What are Angry Chickz's Reserved Rights under the Area Development Agreement?
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;
b) to offer, sell, provide, produce, license, distribute and market products and services identified by our trademarks and/or other trademarks or service marks to any person or entity, at or through any location or outlet (other than Restaurants, the physical premises of which are located within the Development Area, except for Restaurants located at Non-Traditional Venues), regardless of proximity to the Development Area, and through any distribution channel, at wholesale or retail, including by means of 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;
c) to advertise and promote the our system through any means and at any location, including the internet or internet web site, temporary or permanent displays of products or services, including those offered or sold through Restaurants, television, radio, billboards, email, text message, social media, print media, direct mail, demonstrations, seminars, and other forms of advertising and promotion;
d) to develop, acquire, merge with, or otherwise become associated with other concepts (including dual branding and/or franchise systems), whether or not using our system and/or our trademarks, and award franchises and/or licenses under other concepts for locations anywhere; and
e) own, use, license, maintain, and otherwise deal with consumer, vendor, and sales information, including such customer, vendor and sales information from customers purchasing goods or services from you.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the franchisor retains significant rights (referred to as "Reserved Rights") even within a Development Area granted to an area developer. These reserved rights allow Angry Chickz, at its discretion, to operate and franchise businesses that might otherwise seem to encroach on the developer's territory.
Specifically, Angry Chickz reserves the right to develop, own, operate, franchise, or license others to operate restaurants outside the Development Area, regardless of proximity. They can also operate businesses providing goods and services, even within the Development Area, as long as they operate under names other than "Angry Chickz". Furthermore, Angry Chickz can establish restaurants and other businesses at Non-Traditional Venues (such as airports, casinos, or food courts) both inside and outside the Development Area. They can also operate any type of business under different trademarks at any location, regardless of proximity to the Development Area, even if these businesses compete with Angry Chickz restaurants.
In addition, Angry Chickz reserves the right to offer, sell, provide, produce, license, distribute, and market products and services identified by their trademarks through any location or outlet other than restaurants within the Development Area (excluding Non-Traditional Venues). This includes various distribution channels like the internet, mobile applications, third-party delivery services, and food trucks. Angry Chickz also retains the right to advertise and promote their system through any means and at any location. They can develop or acquire other concepts, including dual branding, and award franchises under those concepts anywhere. Finally, Angry Chickz can own, use, license, and maintain consumer, vendor, and sales information.
These reserved rights mean that while an area developer receives a defined Development Area, Angry Chickz maintains considerable flexibility to expand its brand through various channels and locations, some of which may compete with the developer's restaurants. A prospective franchisee should carefully consider these reserved rights and how they might impact their business before entering into an Area Development Agreement with Angry Chickz.