While in a position with an Angry Chickz franchisee, can I engage in or render services to another restaurant?
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 the 2025 Angry Chickz Franchise Disclosure Document, while you are in a position with an Angry Chickz franchisee, you are restricted from certain activities that could harm the franchisee or franchisor. Specifically, you cannot divert customers, harm the goodwill associated with Angry Chickz's intellectual property, or be involved with competing businesses.
The FDD states that you cannot own, engage in, or render 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 also applies to businesses involved in the wholesale preparation, production, or sale of boneless breaded chicken food products. Additionally, you are prohibited from being involved with any restaurant or business that closely resembles Angry Chickz in terms of appearance, trade dress, décor, or overall operation.
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. This means you can invest in a publicly traded restaurant company, even if it competes with Angry Chickz, as long as your ownership stake remains below 5%. These restrictions are in place to protect the Angry Chickz brand and the interests of its franchisees.