Under what conditions does Angry Chickz provide a protected area to the franchisee?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Protected Area.
Subject to Section 2.4 and provided that Franchisee is in full compliance with this Agreement and all other Agreements between Company (and its Affiliates) and Franchisee (or any of its Affiliates), then during the Term, neither Company nor its Affiliates will operate, or authorize any other individual or Entity to operate, a Dine-In Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues and as otherwise permitted in Section 2.4.
Franchisee acknowledges and agrees that the territorial rights provided in this Section 2.3, do not provide Franchisee with exclusive rights with respect to any particular customer or potential customer, nor do they restrict Company or any of its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others from accepting orders (including catering orders) from persons within or 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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee may be granted a protected area under specific conditions. During the term of the agreement, Angry Chickz agrees that neither they nor their affiliates will operate or authorize others to operate a dine-in restaurant within the franchisee's protected area. This protection is subject to the franchisee's full compliance with the franchise agreement and all other agreements with Angry Chickz and its affiliates.
However, this protected area does not grant exclusive rights to any particular customer or potential customer. Angry Chickz retains the right to accept orders (including catering) from individuals both inside and outside the protected area through online platforms and other systems, and to deliver or fulfill these orders within the protected area.
Angry Chickz also reserves the right to develop, own, operate, and franchise restaurants outside the protected area, regardless of their proximity. They can also operate businesses that offer goods and services within or outside the protected area, excluding dine-in restaurants within the protected area (except those at non-traditional venues). These stipulations mean that while a franchisee receives some territorial protection, Angry Chickz retains considerable freedom to operate and expand, particularly through alternative channels and locations.