Can Angry Chickz franchisees face competition from other channels of distribution or competitive brands that Angry Chickz controls?

According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees may face competition from various sources that the company controls. Specifically, Angry Chickz franchisees should be aware that they may encounter competition from other franchisees, outlets that Angry Chickz owns, or other channels of distribution or competitive brands that Angry Chickz controls. This means that while franchisees are granted a Protected Area, it is not an exclusive territory.

Angry Chickz retains significant rights to operate and license businesses that could compete with a franchisee's location. These Reserved Rights allow Angry Chickz to develop, own, operate, franchise, or license others to operate Restaurants outside the Development Area, regardless of proximity. They can also operate businesses under different names, including those that offer similar products or services, without restriction. This broad reservation of rights means that Angry Chickz can explore various business models and channels without being limited by the franchisee's territory.

Furthermore, Angry Chickz reserves the right to offer, sell, provide, produce, license, distribute, and market products and services identified by their trademarks through any distribution channel, including the internet, mobile applications, third-party delivery services, food trucks, and other non-fixed locations. This allows Angry Chickz to explore alternative distribution methods that may compete directly with the franchisee's dine-in restaurant. Prospective franchisees should carefully consider these competitive factors and how they might impact their business's performance.

Item 12 also states that Angry Chickz and its affiliates reserve the right to establish and/or acquire other food service businesses in the future. While the document states that as of the date of the disclosure, there are no plans to establish other franchises or businesses providing similar products or services under a different trademark, this does not prevent them from doing so in the future. This clause provides Angry Chickz with the flexibility to adapt to changing market conditions and potentially introduce new brands or concepts that could compete with existing franchisees.