Is Angry Chickz restricted from granting franchises for businesses operating under names other than Angry Chickz within the Development Area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3.2 Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, licensees, franchisees, assigns, agents and others:
- (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 within or outside the Development Area, and regardless of their proximity to any Restaurant developed or under development or consideration by Developer; and (iv) businesses operating under names other than under the Marks 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 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz retains significant rights within and outside a franchisee's development area. Specifically, Angry Chickz is not restricted from franchising or licensing businesses operating under names other than "Angry Chickz", regardless of their proximity to the Development Area. This means that while a franchisee is granted certain territorial protections for restaurants operating under the Angry Chickz name, the franchisor can operate or franchise other concepts, even if they compete with the franchisee's Angry Chickz restaurant.
This reservation of rights extends to various business types and locations. Angry Chickz can develop, own, operate, franchise, or license businesses that provide goods and services both within and outside the Development Area under different names. They can also operate Restaurants and other businesses at Non-Traditional Venues, irrespective of their location relative to the franchisee's restaurant. This broad reservation allows Angry Chickz to pursue diverse business opportunities without being constrained by the territorial rights granted to franchisees.
For a prospective Angry Chickz franchisee, this has important implications. While the franchisee will have some territorial protection for the Angry Chickz brand, they should be aware that Angry Chickz can introduce other brands or concepts that might compete, even within the franchisee's Development Area. This could impact the franchisee's potential market share and revenue. It is essential for potential franchisees to carefully consider this aspect and discuss with Angry Chickz their plans for other brands or concepts in the area to fully understand the competitive landscape.