Is Angry Chickz restricted from operating businesses under different names that might compete with Restaurants 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 Angry Chickz's 2025 Franchise Disclosure Document, while Angry Chickz grants the developer certain territorial rights, it retains significant freedom to operate other businesses. Specifically, Angry Chickz is not restricted from developing, owning, or franchising businesses under names other than "Angry Chickz," even if they offer similar products or services and compete with existing Angry Chickz Restaurants. This applies both within and outside the Development Area, regardless of proximity.
This means that a prospective Angry Chickz franchisee's Development Area is primarily protected only against other Angry Chickz restaurants. Angry Chickz can operate or franchise other concepts that directly compete with the franchisee's Angry Chickz restaurant, as long as they do not use the "Angry Chickz" name. This could include similar restaurant concepts or businesses offering similar goods and services.
This clause has significant implications for potential franchisees. While franchisees are granted a Development Area, Angry Chickz reserves the right to operate competing businesses under different brand names within or outside that area. Franchisees should carefully consider the potential impact of such competition on their investment and profitability. It would be prudent for potential franchisees to discuss this clause with Angry Chickz to understand their plans for other business ventures and how those ventures might affect the franchisee's business.