What rights does Angry Chickz expressly reserve?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
r outside the Protected Area through online food ordering platforms and other systems and delivering or fulfilling such orders to customers or others located within the Protected Area.
- 2.4 Reservation of Rights. Franchisee's rights under this Agreement are nonexclusive and Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others:
- 2.4.1 to develop, own or operate, and to franchise or license others to own or operate (i) Restaurants, the physical location of which are located outside of the Protected Area, regardless of proximity to the Protected Area; (ii) businesses that provide goods and services within or outside of the Protected Area, regardless of proximity to the Protected Area, other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues; (iii) Restaurants and other businesses, the physical location of which are located at Non-Traditional Venues; and/or (iv) businesses operating under names other than under the Marks at any location, and of any type whatsoever, regardless of their proximity to the Protected Area and whether or not such businesses use any portion of the System, offer similar products and services, or compete with Restaurants;
- 2.4.2 to offer, sell, provide, produce, license, distribute and market products and services identified by the Marks and/or other trademarks or service marks to any Person, at or through any location or outlet (other than a Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues), regardless of proximity to the Protected Area, and through any distribution channel, at wholesale or retail, including by means of catering, 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;
- 2.4.3 to advertise and promote the System through any means and at any location, including through the internet, mobile application, 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;
- 2.4.4 to develop, acquire, merge with, or otherwise become associated with other concepts (including dual branding and/or franchise systems), whether or not using the System and/or the Marks, and award franchises and/or licenses under other concepts for locations anywhere; and
- 2.4.5 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 Franchisee.
ARTICLE 3 TERM AND RIGHT TO ENTER INTO SUCCESSOR FRANCHISE AGREEMENT
3.1 Initial Term. The term of this Agreement ("Term") shall commence on the Effective Date and shall expire on tenth (10th) anniversary of the Opening Date(the "Expiration Date"), unless sooner terminated or extended in accordance with this Agreement.
3.2 Right to Enter into Successor Franchise Agreement.
- 3.2.1 Subject to the conditions contained in Section 3.4 and Franchisee's compliance with Section 3.3, at the expiration of the Term hereof, Franchisee shall have the right (the "Successor Agreement Right") to enter into a new franchise agreement on the then-current form generally being offered to prospective franchisees of Company operating under the Marks (the "Successor Franchise Agreement") for two (2) successive five (5) year periods (each a "Successor Term"). Franchisee acknowledges that the terms of the Successor Franchise Agreement, including fees and royalties, will be substantially similar to new franchise agreements granted at the time and may materially differ from those contained in this Agreement.
- 3.2.2 The term of the Successor Franchise Agreement shall commence upon the date of expiration of the Term, or Successor Term, as applicable;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the company retains significant rights regarding the operation and expansion of the franchise system. Specifically, Angry Chickz reserves the right to develop, own, operate, franchise, or license restaurants outside a franchisee's protected area. This means that Angry Chickz can establish new locations, even if they are near an existing franchisee, as long as they are technically outside the protected territory. The company can also operate businesses that offer similar goods and services outside the protected area, except for traditional restaurants within the protected area (excluding those in non-traditional venues). Additionally, Angry Chickz can operate businesses under different brand names at any location, regardless of proximity or competition with existing restaurants.
Angry Chickz also reserves the right to sell and market products and services identified by their trademarks through various channels, including wholesale, retail, catering, internet, mobile applications, food trucks, and mail order, without restriction, as long as it's not a traditional restaurant within the franchisee's protected area (excluding non-traditional venues). This allows Angry Chickz to explore diverse revenue streams and adapt to changing consumer preferences without being limited by individual franchise agreements. The company also retains full control over advertising and promotion of the Angry Chickz system through any means and at any location, including digital and traditional media.
Furthermore, Angry Chickz maintains control over cooperative advertising regions. While these regions can decide how to use their advertising funds, any advertising placement or commitment of funds requires Angry Chickz's prior written approval. Angry Chickz also reserves the right to set standards for the operation of these co-ops, the advertising agencies they use, and the advertising programs they conduct. The company can resolve disputes within the co-op, and their decisions are final and binding. Additionally, Angry Chickz can establish a Franchise Advisory Council to advise on marketing programs, with exclusive rights to determine its structure, operation, and participation. Franchisees may be required to participate in this council under terms set by Angry Chickz.
These reserved rights provide Angry Chickz with the flexibility to manage and grow the brand strategically, adapt to market changes, and maintain consistent brand standards across all locations and channels. However, prospective franchisees should carefully consider these rights and how they might impact their individual business, particularly concerning potential competition from other Angry Chickz ventures and the franchisor's control over marketing and advertising initiatives.