Can Angry Chickz franchise or license others to own or operate restaurants outside of the protected area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's rights under this Agreement are nonexclusive and Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others:
2.4.1 to develop, own or operate, and to franchise or license others to own or operate (i) Restaurants, the physical location of which are located outside of the Protected Area, regardless of proximity to the Protected Area; (ii) businesses that provide goods and services within or outside of the Protected Area, regardless of proximity to the Protected Area, other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues; (iii) Restaurants and other businesses, the physical location of which are located at Non-Traditional Venues; and/or (iv) businesses operating under names other than under the Marks at any location, and of any type whatsoever, regardless of their proximity to the Protected Area and whether or not such businesses use any portion of the System, offer similar products and services, or compete with Restaurants;
2.4.2 to offer, sell, provide, produce, license, distribute and market products and services identified by the Marks and/or other trademarks or service marks to any Person, at or through any location or outlet (other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues), regardless of proximity to the Protected Area, and through any distribution channel, at wholesale or retail, including by means of catering, the internet or internet web site, mobile application, online food and beverage ordering, third-party food and beverage delivery services, food trucks or other non-fixed locations, mail order catalogs, direct mail advertising, and other distribution methods, including websites, online retailers, and direct sales through affiliates;
2.4.3 to advertise and promote the System through any means and at any location, including through the internet, mobile application, or internet web site, temporary or permanent displays of products or services, including those offered or sold through Restaurants, television, radio, billboards, email, text message, social media, print media, direct mail, demonstrations, seminars, and other forms of advertising and promotion;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz retains the right to develop, own, operate, franchise, or license others to operate restaurants outside of a franchisee's protected area. This means that while a franchisee is granted a protected area, Angry Chickz is not restricted from establishing other Angry Chickz locations, or businesses offering similar goods and services, outside of that defined area. These company-owned or franchised locations can be of any type and operate under different names, regardless of proximity to the franchisee's protected area.
This reservation of rights extends to various business activities. Angry Chickz can offer, sell, provide, license, distribute, and market products and services identified by their trademarks to anyone through any location or outlet outside the franchisee's protected area (excluding traditional restaurants within the protected area, but including those at non-traditional venues). This includes various distribution channels such as catering, internet sales, mobile applications, third-party delivery services, and food trucks.
Furthermore, Angry Chickz reserves the right to advertise and promote the Angry Chickz system through any means and at any location, including the internet, mobile applications, television, radio, and social media. This broad reservation of rights emphasizes that the rights granted to the franchisee are non-exclusive, and Angry Chickz retains significant control over the expansion and promotion of the brand, even if it may impact a franchisee's business.