Where are Restricted Persons prohibited from engaging in Competitive Activities during the term of the Angry Chickz agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ployee, consultant, representative or agent, any restaurant or business that (i) specializes in developing, owning, operating or franchising restaurants 25% or more of whose gross sales is derived from the sale of boneless breaded chicken; (ii) any business engaged in the preparation, production or sale, at wholesale, of any boneless breaded chicken food products; or (iii) any restaurant or business that looks like, copies, imitates, operates with similar trade dress or décor, or is otherwise substantially the same as or similar to Angry Chickz Restaurants. This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly-held corporation.
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- To the extent permitted by Applicable Law, after my position with the Franchisee ends, I will not, for a period of 24 months thereafter, own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any restaurant or business that (i) specializes in developing, owning, operating or franchising restaurants 25% or more of whose gross sales is derived from the sale of boneless bre
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, Exhibit E outlines the Confidentiality and Non-Competition Agreement for individuals holding positions with franchisees. After their position with the franchisee ends, these individuals are restricted from engaging in competitive activities for 24 months. This includes owning, engaging in, or rendering services to any restaurant or business that specializes in developing, owning, operating, or franchising restaurants where 25% or more of gross sales are derived from boneless breaded chicken.
The restriction also applies to businesses engaged in the preparation, production, or wholesale sale of boneless breaded chicken food products. Furthermore, it extends to any restaurant or business that resembles, copies, imitates, or operates with similar trade dress or décor to Angry Chickz restaurants.
The non-compete is limited to the Protected Area of the Franchisee or within a 10-mile radius from any then-existing Angry Chickz restaurant. However, this restriction does not apply to ownership of less than a 5% beneficial interest in the outstanding securities of any publicly-held corporation.