Can Angry Chickz operate businesses that compete with Angry Chickz restaurants?
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;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz retains significant rights to operate businesses that may compete with franchisee-owned restaurants. Specifically, Angry Chickz reserves the right to develop, own, or operate restaurants or other businesses under certain conditions. This includes the right to franchise or license others to do the same.
Angry Chickz has the right to operate restaurants outside of a franchisee's protected area, regardless of proximity. They can also operate businesses that provide goods and services both within and outside the protected area, excluding restaurants within the protected area (except those at Non-Traditional Venues). Additionally, Angry Chickz can operate restaurants and other businesses at Non-Traditional Venues. They are also permitted to operate businesses under different names, regardless of location, proximity to the protected area, or whether they compete with Angry Chickz restaurants, even if they utilize the Angry Chickz system or offer similar products and services.
Furthermore, Angry Chickz reserves the right to offer, sell, produce, license, distribute, and market products and services identified by their trademarks to anyone, through any location or outlet (excluding restaurants within the franchisee's protected area, except for Non-Traditional Venues). This includes various distribution channels such as catering, internet, mobile applications, online ordering, third-party delivery services, food trucks, mail order, and direct mail.
This extensive reservation of rights means that Angry Chickz has considerable freedom to operate competing businesses, which could impact a franchisee's market and revenue potential. Prospective franchisees should carefully consider these competitive rights and how they might affect their investment before entering into a franchise agreement with Angry Chickz.