During the term of the Angry Chickz franchise agreement, is an Angry Chickz franchisee allowed to divert business or customers of the franchised business to another person or entity?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Non-Competition. Franchisee acknowledges that the System is distinctive and has been developed by Company and/or its Affiliates at great effort, time, and expense, and that Franchisee has regular and continuing access to valuable and confidential information, training, and Confidential Information regarding the System. Franchisee recognizes its obligations to keep confidential such information as set forth in this Agreement. Franchisee therefore agrees as follows:
- 12.1.1 During the Term, no Restricted Person shall in any capacity, either directly or indirectly, through one or more affiliated Entities, (i) engage in any Competitive Activities, (ii) divert or attempt to divert any business or customers of the Franchised Business to any other person or Entity, or (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, during the term of the franchise agreement, an Angry Chickz franchisee is not allowed to divert business or customers of the franchised business to any other person or entity. Specifically, the franchise agreement states that no Restricted Person (as defined in the agreement) shall divert or attempt to divert any business or customers of the Franchised Business to any other person or Entity.
This restriction is part of a broader non-competition agreement that Angry Chickz franchisees must adhere to. This agreement acknowledges that the Angry Chickz system is unique and has been developed at great expense, and that franchisees have access to valuable and confidential information. This clause aims to protect the goodwill associated with the Angry Chickz brand and prevent franchisees from using the brand's reputation to benefit other ventures.
This provision is typical in franchise agreements to protect the brand and prevent unfair competition from current franchisees. Violation of this clause could result in a breach of the franchise agreement and potential legal consequences for the franchisee. Prospective franchisees should carefully consider this restriction and ensure they are fully committed to the Angry Chickz system before entering into the agreement.