Is Angry Chickz permitted to operate businesses under different trademarks at any location, regardless of proximity to a franchisee's 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 significant rights regarding other businesses and trademarks. Specifically, Angry Chickz reserves the right to operate businesses under names other than its trademarks at any location, irrespective of their proximity to a franchisee's Development Area. This includes businesses of any type, regardless of whether they use any portion of the Angry Chickz system, offer similar products or services, or directly compete with existing Angry Chickz restaurants. This reservation of rights is termed "Reserved Rights" in the FDD.
This provision means that a franchisee's Development Area does not protect them from competition from other businesses owned or licensed by Angry Chickz that operate under different brand names. These businesses can be located anywhere, including very close to a franchisee's territory. This is a crucial point for prospective franchisees to consider, as it highlights the potential for competition from the franchisor itself through different business concepts.
Furthermore, Angry Chickz also reserves the right to develop, acquire, or merge with other concepts, including dual branding and franchise systems, whether or not they use the Angry Chickz system or trademarks. They can award franchises or licenses under these other concepts for locations anywhere. This broad reservation of rights gives Angry Chickz considerable flexibility in expanding its business operations through various avenues, which may or may not directly benefit existing franchisees. Franchisees should be aware that Angry Chickz's strategic decisions regarding these other concepts could impact their market share and profitability.
In summary, while franchisees are granted certain territorial protections, these protections do not extend to businesses operated by Angry Chickz or its affiliates under different trademarks. This aspect of the franchise agreement introduces a level of risk and uncertainty that prospective franchisees should carefully evaluate. It is advisable to discuss these Reserved Rights with Angry Chickz to fully understand the potential implications for their investment.