If a Restricted Person ceases their relationship with the Angry Chickz developer, what restrictions apply?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
8.2.1 During the Term, no Restricted Person shall in any capacity, either directly or indirectly, through one or more Affiliates or otherwise, engage in any Competitive Activities at any location, whether within or outside the Development Area.
8.2.2 To the extent permitted by Applicable Law, upon (i) the expiration or termination of this Agreement, (ii) the occurrence of any Assignment, or (iii) the cessation of any Restricted Person's relationship with Developer, each person who was a Restricted Person before such event shall not for a period of 24 months thereafter, either directly or indirectly, own, operate, advise, be employed by, or have any financial interest in any business engaged in Competitive Activities within the Development Area or within 10 miles of any then-existing Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if a Restricted Person's relationship with the Angry Chickz developer ends, certain restrictions apply for a period of 24 months. Specifically, the Restricted Person cannot own, operate, advise, be employed by, or have any financial interest in any business engaged in Competitive Activities within the Development Area or within 10 miles of any then-existing Angry Chickz restaurant.
Competitive Activities are defined as businesses that specialize in developing, owning, operating, or franchising restaurants where 25% or more of gross sales are from boneless breaded chicken. It also includes businesses engaged in the preparation, production, or sale of boneless breaded chicken food products at wholesale. Finally, it encompasses any restaurant or business that resembles, copies, imitates, or operates with similar trade dress or décor to Angry Chickz restaurants, or is substantially the same or similar.
This restriction is in place to protect Angry Chickz's market and trade secrets. The non-compete clause ensures that individuals with knowledge of Angry Chickz's operations and strategies cannot use that information to benefit a competing business within a specific geographic area for a limited time. This type of clause is common in franchising to maintain brand integrity and prevent unfair competition.