According to the Angry Chickz agreement, what happens to the cost of the cure?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to all other remedies, if Franchisee shall default in the performance of any of its obligations or breach any term or condition of this Agreement or any related agreement, Company may, at its election, immediately or at any time thereafter, without waiving any claim for default or breach and without notice to Franchisee, cure such default or breach for the account and on behalf of Franchisee, and the cost to Company shall be due and payable on demand and shall be deemed to be additional compensation due to Company and shall be added to the amount of compensation next accruing, at the election of Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, if a franchisee defaults on the franchise agreement, Angry Chickz has the option to cure the default on behalf of the franchisee. The cost incurred by Angry Chickz in curing the default is then due and payable by the franchisee upon demand.
This cost is considered additional compensation owed to Angry Chickz and, at Angry Chickz's election, will be added to the amount of compensation next accruing. This means that in addition to covering the costs Angry Chickz incurred to resolve the default, the franchisee might also see this amount added to their next regular payment to the company.
This clause in the Angry Chickz franchise agreement ensures that Angry Chickz can take swift action to correct any defaults that could harm the brand or other franchisees, while also ensuring they are compensated for their expenses. It is important for prospective franchisees to understand that defaulting on the agreement can lead to additional financial burdens beyond the initial issue that caused the default.