Can Angry Chickz operate Restaurants at Non-Traditional Venues within or outside the Development Area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
"Non-Traditional Venue" means (i) a location, site, venue or location within another primary business or in conjunction with other businesses or at institutional settings, corporate campus complexes, including, toll roads, highway travel plazas, hotels and motels, resorts, amusement parks, casinos and casino adjacent locations, airports, sports arena, stadiums, bus stations, train stations, theme parks, amusement facilities, convention centers, military and other governmental facilities, movie theaters, hospitals and medical centers, concert venues, grocery stores, supermarkets, convenience stores, schools, college and university campus, ships, ports, piers, gyms, offices, expositions, fairs or similar events, or in-plant food service facilities, shopping mall food courts, food halls, and any site for which the lessor, owner or operator thereof shall have indicated its intent to prefer or limit the operation of its food service facilities to a master concessionaire or contract food service provider; (ii) any location to which the general public does not have unlimited access; (iii) mobile outlets, temporary or seasonal food service facilities; and/or (iv) commercial kitchen facilities (e.g., "ghost kitchens") that provide order and delivery-only services, which may include the associated online or mobile ordering and delivery services to and from locations in or outside of the Development Area. "Venue" is any location, site, venue or location that is not a Non-Traditional Venue.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains the right to operate restaurants at non-traditional venues, regardless of their location relative to a franchisee's development area. This means that even if a franchisee has an area development agreement, Angry Chickz can still open or license restaurants in non-traditional venues within or outside that area. This is explicitly stated as one of Angry Chickz's reserved rights.
For a prospective franchisee, this is a significant consideration. While an area development agreement grants the right to develop and operate dine-in restaurants within a specific area, it does not prevent Angry Chickz from establishing locations in non-traditional venues such as airports, casinos, universities, or food courts within that same area. This could potentially lead to competition within the franchisee's designated development area from locations that Angry Chickz directly controls or licenses.
The FDD defines a "Non-Traditional Venue" to include a wide array of locations, including those within other primary businesses, institutional settings, corporate campuses, toll roads, hotels, amusement parks, casinos, airports, sports arenas, train stations, convention centers, military facilities, movie theaters, hospitals, concert venues, grocery stores, schools, college campuses, ships, gyms, offices, fairs, shopping mall food courts, and even ghost kitchens. This broad definition means that many potential locations fall outside the scope of the franchisee's protected territory, allowing Angry Chickz considerable freedom in establishing new outlets.
This reserved right is common in franchising, allowing franchisors to explore diverse market segments and location types. However, it's crucial for potential Angry Chickz franchisees to understand the implications of this right on their potential market share and revenue within their development area. Franchisees should carefully evaluate the potential impact of non-traditional venues on their business plan and discuss this aspect with Angry Chickz during their due diligence.