What geographic area does the non-compete obligation cover after the termination of the Angry Chickz agreement?

The 2025 Angry Chickz FDD includes addenda for franchisees in specific states like California, Illinois, Maryland, and Virginia. For California, the FDD notes that the franchise agreement contains a covenant not to compete that extends beyond the termination of the franchise; however, it also states that this provision may not be enforceable under California law. This suggests that while Angry Chickz includes a non-compete clause in its standard franchise agreement, its enforceability in California is questionable.

For Illinois, Maryland, and Virginia, the addenda focus on modifications to payment terms, dispute resolution, and franchisee rights under state laws. These addenda do not specifically address the geographic scope or enforceability of non-compete agreements. The absence of specific modifications to the non-compete clause in these states suggests that the standard terms of the Angry Chickz franchise agreement regarding non-competition would apply, but the FDD excerpts provided do not detail what those terms are.

Therefore, a prospective Angry Chickz franchisee should carefully review Item 17 of the FDD, which typically covers renewal, termination, transfer, and dispute resolution, to understand the specific terms of the non-compete agreement. They should also consult with a legal professional to determine the enforceability of such provisions in their specific state, as state laws vary significantly on this issue. It is crucial to understand the geographic scope and duration of any post-termination non-compete obligations before entering into a franchise agreement with Angry Chickz.