Are Angry Chickz franchisees granted exclusive rights to any particular customer or potential customer within their protected area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that the territorial rights provided in this Section 2.3, do not provide Franchisee with exclusive rights with respect to any particular customer or potential customer, nor do they restrict Company or any of its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others from accepting orders (including catering orders) from persons within or outside the Protected Area through online food ordering platforms and other systems and delivering or fulfilling such orders to customers or others located within the Protected Area.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, franchisees are not granted exclusive rights to any specific customer within their protected area. While Angry Chickz provides a protected area, this does not prevent the company itself, its employees, affiliates, or other franchisees from accepting orders from customers inside or outside the protected area through online platforms or other systems and fulfilling those orders within the franchisee's protected area. This means that even within a franchisee's territory, customers can still order Angry Chickz through online means that may be fulfilled by other locations or by the company directly.
This lack of exclusivity regarding customers has important implications for prospective franchisees. It means that franchisees will likely face competition for customers within their own protected area from online orders and potentially from other Angry Chickz locations fulfilling those orders. This could impact a franchisee's potential revenue and profitability, as they cannot rely solely on customers within their territory.
Angry Chickz, like many franchise systems, reserves the right to utilize various channels of distribution, including online ordering and delivery services, which may overlap with a franchisee's protected area. This is a common practice in the franchise industry, as it allows the franchisor to adapt to changing consumer preferences and maximize brand reach. However, it is crucial for prospective franchisees to understand the extent to which these channels may impact their business and to factor this into their financial projections.
Therefore, while Angry Chickz offers a protected area, franchisees should be aware that this protection does not extend to exclusive rights over individual customers. They should carefully consider the potential impact of online ordering and other distribution channels on their business and discuss these factors with the franchisor before making a final investment decision.