After Angry Chickz accepts the location, what is the franchisee required to do regarding a lease or purchase agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 Lease or Purchase of Location.
5.2.1 Promptly following Company's acceptance of the Location, Franchisee shall proceed to negotiate a lease for the Location or purchase agreement for the Location. Franchisee shall submit a copy of the proposed lease or purchase agreement to Company following Company's acceptance of the Location and prior to execution. If the Location is leased or subleased, (i) the lease for the Location shall name Franchisee as the sole lessee and it may not be assigned or sublet without Company's prior written consent; (ii) Company shall have the right to review the lease for the Location; (iii) Franchisee shall not create any
obligations on behalf of Company, or grant to lessor any rights against Company, nor agree to any other term, condition, or covenant which is inconsistent with any provision of this Agreement; (iv) the lease for the Location shall be for a term (including options) which is not less than the Term (and the Successor Term), unless Company approves a shorter term of the lease in writing; (v) the lease for the Location shall not contain a non-competition covenant which purports to restrict Company, or any franchisee or licensee of Company (or its Affiliates), from operating a Restaurant or any other retail establishment, unless such covenant is accepted by Company in writing prior to the execution of the lease for the Location; (vi) Franchisee shall duly and timely perform all of the terms, conditions, covenants and obligations imposed upon Franchisee under the lease; and (vii) a fully executed copy of the lease for the Location shall be delivered to Company within 10 days after execution. The lease for the Location shall include the addendum attached as Exhibit D unless Company otherwise consents in writing.
- 5.2.2 If the Location is being purchased by Franchisee, the purchase and sale contract shall be subject to Company's review. A copy of the executed contract shall be furnished to Company within 10 days after execution.
- 5.2.3 Franchisee execute such lease or purchase agreement not later than 90 days following the Effective Date.
- 5.2.4 Franchisee hereby authorizes Company and lessor to communicate with one another for any purpose, including de-identification of the Location following the termination or expiration (including nonrenewal) of this Agreement or the lease for the Location, Franchisee's sales, Franchisee's defaults under this Agreement or the lease for the Location, and negotiating a lease for the Location following the termination or expiration of the lease for the Location.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, after Angry Chickz accepts a proposed location, the franchisee must promptly negotiate a lease or purchase agreement for that location. The franchisee is then required to submit a copy of the proposed lease or purchase agreement to Angry Chickz for review before executing it. The franchisee must execute the lease or purchase agreement no later than 90 days following the Effective Date of the Franchise Agreement.
If the franchisee leases the location, the lease must name the franchisee as the sole lessee and cannot be assigned or sublet without Angry Chickz's prior written consent. The lease term must be at least as long as the franchise term, including any renewal options, unless Angry Chickz approves a shorter term in writing. The lease cannot contain any non-competition clauses that would restrict Angry Chickz or its other franchisees, unless Angry Chickz agrees to the clause in writing before the lease is signed. The franchisee is responsible for fulfilling all obligations under the lease and must provide Angry Chickz with a fully executed copy of the lease within 10 days of signing. The lease must also include an addendum provided by Angry Chickz, unless the company provides written consent otherwise.
If the franchisee purchases the location, the purchase agreement is subject to Angry Chickz's review, and a copy of the executed contract must be provided to Angry Chickz within 10 days after execution. Furthermore, the franchisee authorizes Angry Chickz and the lessor to communicate with each other regarding various aspects of the location, including sales data, defaults, and lease negotiations, even after the franchise agreement expires.