During the term of the agreement, can a Restricted Person engage in Competitive Activities related to Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
8.2.1 During the Term, no Restricted Person shall in any capacity, either directly or indirectly, through one or more Affiliates or otherwise, engage in any Competitive Activities at any location, whether within or outside the Development Area.
8.2.2 To the extent permitted by Applicable Law, upon (i) the expiration or termination of this Agreement, (ii) the occurrence of any Assignment, or (iii) the cessation of any Restricted Person's relationship with Developer, each person who was a Restricted Person before such event shall not for a period of 24 months thereafter, either directly or indirectly, own, operate, advise, be employed by, or have any financial interest in any business engaged in Competitive Activities within the Development Area or within 10 miles of any then-existing Restaurant.
In the event of the violation of this provision by Developer following termination or expiration of this Agreement, the period of time Developer shall be required to abide by this obligation shall be extended to a period ending 24 months after Developer is no longer in default of this obligation.
- 8.3 Certain Developments.
All ideas, concepts, techniques, or materials relating to a Restaurant ("Developments"), whether or not protectable intellectual property and whether created by or for Developer or its Owners, employees or contractors, must be promptly disclosed to Company and will be deemed to be Company's sole and exclusive property.
Developer assigns ownership of that item, and all related rights to that item, to Company.
The Company will sign and cause its Owners, employees and contractors to sign whatever assignment or other documents Company requests to evidence Company's ownership and to help Company obtain intellectual property rights in the item.
Developer may not use any Developments in operating a Restaurant or otherwise without Company's prior written approval.
Developer waives all moral rights in the Developments and will cause all of its Owners, employees and contractors to waive all moral rights in the Developments.
- 8.4 Press Releases.
Unless required by Applicable Law, no public communication, press release or announcement regarding this Agreement, the transactions contemplated hereby shall be made by Developer without the prior written consent of Company.
- 8.5 Enforcement.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, during the term of the agreement, a Restricted Person is prohibited from engaging in Competitive Activities. The FDD specifies that no Restricted Person can participate directly or indirectly in Competitive Activities, regardless of location, whether within or outside the Development Area.
"Competitive Activities" are defined as owning, operating, lending to, advising, being employed by, or having any financial interest in (i) any restaurant where 25% or more of gross sales come from boneless breaded chicken (excluding other Angry Chickz franchises), (ii) any business specializing in developing, owning, operating, or franchising restaurants with 25% or more of gross sales from boneless breaded chicken, or (iii) any business engaged in the wholesale preparation, production, or sale of boneless breaded chicken food products.
However, the definition of "Competitive Activities" does not include owning securities of any entity traded on a national securities exchange, provided that the owner is not a controlling person or part of a controlling group and does not own 5% or more of any class of securities of that entity. This exception allows for passive investments in publicly traded companies, even if they are involved in businesses that might otherwise be considered competitive.