While in my position with an Angry Chickz franchisee, am I prohibited from being involved with a restaurant or business that specializes in developing, owning, operating, or franchising restaurants where 25% or more of gross sales is derived from boneless breaded chicken?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
While in my position with the Franchisee, I will not 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.
This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly-held corporation.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, while you are in a position with an Angry Chickz franchisee, you are restricted from certain competitive activities. Specifically, you cannot own, engage in, or provide services to any restaurant or business that specializes in developing, owning, operating, or franchising restaurants if 25% or more of their gross sales come from boneless breaded chicken.
This restriction applies whether you are an investor, partner, lender, director, officer, manager, employee, consultant, representative, or agent. The FDD specifies that this restriction is in place to protect the interests of both the franchisee and the franchisor, preventing any actions that could harm their business or goodwill.
However, there is an exception to this restriction. You are allowed to own less than a five percent (5%) beneficial interest in the outstanding securities of any publicly-held corporation, even if that corporation is involved in a business that derives 25% or more of its gross sales from boneless breaded chicken. This exception allows for minor investments in publicly traded companies without violating the non-compete clause.