Can Angry Chickz operate businesses under names other than "Angry Chickz" within and outside the Development Area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
s, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We expressly reserve (our "Reserved Rights") the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly:
- a) to develop, own and/or operate and to franchise or license others to own and/or operate (i) Restaurants, the physical location of which are located outside of the Development Area, regardless of proximity to the Development Area, (ii) businesses that provide goods and services within and outside of the Development Area, regardless of proximity to the Development Area under names other than "Angry Chickz," (iii) Restaurants and other businesses at Non-Traditional Venues (defined below) within or outside the Development Area, and regardless of their proximity to any Restaurant developed or under development or consideration by you; and (iv) businesses operating under names other than under our trademarks at any location, and of any type whatsoever, regardless of their proximity to the Development Area and whether or not such businesses use any portion of the System, offer similar products or services or compete with Restaurants;
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz retains specific rights regarding business operations. Angry Chickz explicitly reserves the right to develop, own, and operate businesses that provide goods and services both within and outside a franchisee's Development Area under names other than "Angry Chickz." This means that even within an area where a franchisee has development rights, Angry Chickz can operate other businesses, including those offering similar goods and services, under different brand names.
This reservation of rights has significant implications for potential franchisees. While a franchisee is granted a Development Area, Angry Chickz is not restricted from operating competing or similar businesses under different names within that same area. This could lead to direct competition for the franchisee, potentially impacting their revenue and market share. The franchisee's agreement does not grant them an exclusive territory, and they may face competition from other franchisees, outlets that Angry Chickz owns, or other distribution channels or competitive brands that Angry Chickz controls.
Furthermore, Angry Chickz reserves the right to develop or become associated with other concepts, including dual branding or franchise systems, whether or not using their system or trademarks, and award franchises or licenses under other concepts for locations anywhere. This broad reservation allows Angry Chickz to diversify its business models and potentially introduce new brands or concepts that could compete with existing Angry Chickz franchises. Prospective franchisees should carefully consider these reserved rights and their potential impact on their business before investing in an Angry Chickz franchise.
In summary, while franchisees are granted certain territorial rights, Angry Chickz maintains considerable flexibility to operate other businesses, including those under different brand names, within and outside the Development Area. This is a crucial factor for potential franchisees to understand and evaluate as part of their due diligence process.