Under what condition will Angry Chickz refrain from operating or franchising a Dine-In Restaurant within the Development Area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3.1 During the Term of this Agreement, neither Company nor its Affiliates shall operate or grant a license or franchise to any other person or Entity to operate a Dine-In Restaurant within the Development Area, provided, that Developer is in compliance with the terms of this Agreement.
- 1.3.2 Company expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, itself and through its employees, Affiliates, representatives, licensees, franchisees, assigns, agents and others:
- (a) to develop, own and/or operate and to franchise or license others to own and/or operate (i) Restaurants, the physical location of which are located outside of the Development Area, regardless of proximity to the Development Area, (ii) businesses that provide goods and services within and outside of the Development Area, regardless of proximity to the Development Area under names other than "Angry Chickz," (iii) Restaurants and other businesses at Non-Traditional Venues within or outside the Development Area, and regardless of their proximity to any Restaurant developed or under development or consideration by Developer; and (iv) businesses operating under names other than under the Marks at any location, and of any type whatsoever, regardless of their proximity to the Development Area and whether or not such businesses use any portion of the System, offer similar products or services or compete with Restaurants.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz will not operate or grant a license or franchise to anyone else to operate a Dine-In Restaurant within the Development Area if the Developer (franchisee) is in compliance with the terms of the Area Development Agreement. This territorial protection is a key aspect of the agreement, offering the franchisee a degree of exclusivity within their designated area. The Development Area is defined in Exhibit A of the Area Development Agreement.
However, Angry Chickz retains significant rights outside of this specific restriction. They can develop, own, operate, and franchise restaurants outside the Development Area, regardless of proximity. They can also operate businesses under different names, even within the Development Area. Furthermore, Angry Chickz can operate Restaurants and other businesses at Non-Traditional Venues both within and outside the Development Area.
This means that while a franchisee has some territorial protection for Angry Chickz Dine-In Restaurants, the franchisor has broad rights to operate other businesses and alternative venues, potentially offering similar products or services under different brands or through different channels. A prospective franchisee should carefully evaluate Exhibit A, understand the scope of the Development Area, and consider the potential for Angry Chickz to operate competing businesses nearby under different names or formats.