What triggers the start of the 24-month non-compete period for Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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 within the Protected Area of the Franchisee or within a 10 mile radius from any then-existing Angry Chickz restaurant.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the 24-month non-compete period begins after your position with the franchisee ends. This means that once your involvement with the Angry Chickz franchise concludes, whether through termination, resignation, or any other form of separation, the non-compete clock starts ticking.
During this 24-month period, you are restricted from engaging in any restaurant or business that specializes in developing, owning, operating, or franchising restaurants where 25% or more of their gross sales come from boneless breaded chicken. This restriction also extends to businesses involved in the preparation, production, or wholesale sale of boneless breaded chicken food products. Furthermore, you cannot be involved with any restaurant or business that closely resembles or imitates the Angry Chickz brand, including its trade dress, décor, or overall operation, within the franchisee's protected area or within a 10-mile radius of any existing Angry Chickz restaurant.
It's important to note that this non-compete agreement may not be enforceable under California law, as stated in the FDD. Additionally, the restriction does not apply if you own less than a five percent beneficial interest in the securities of any publicly-held corporation. Prospective franchisees should carefully consider the implications of this non-compete clause and consult with legal counsel to understand its enforceability and potential impact on their future business endeavors.