Can Angry Chickz operate businesses under names other than the Marks at any location?
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;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains the right to operate businesses under names other than the Angry Chickz Marks at any location. Specifically, Angry Chickz reserves the right to develop, own, or operate businesses under different names, regardless of their proximity to a franchisee's protected area. This includes businesses of any type, whether or not they use the Angry Chickz system, offer similar products/services, or compete with existing Angry Chickz restaurants.
This provision in the franchise agreement clarifies that Angry Chickz can engage in other business ventures, even if they potentially compete with a franchisee's location. This could include operating entirely different restaurant concepts or other types of businesses under different brand names.
For a prospective franchisee, this means that Angry Chickz could operate a competing business near their franchised location under a different name. While the franchisee may have a protected area for their Angry Chickz restaurant, this clause allows Angry Chickz to operate other businesses without those restrictions. It is important for potential franchisees to understand this clause and its implications for potential competition from the franchisor itself.