What activities are prohibited for owners of equity of the franchisee under the applicable Franchise Agreement for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
(a) A prohibition on the right of a franchisee to join an association of franchisees.
(b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act.
This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
- (d) A provision that permits a Franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration, of the franchisee's inventory, supplies, equipment, fixtures, and furnishings.
Personalized materials which have no value to the Franchisor and inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation.
This subsection applies only if: (i) the term of the franchise is less than 5 years; and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising, or other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not receive at least 6 months advance notice of Franchisor's intent not to renew the franchise.
- (e) A provision that permits the Franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances.
This section does not require a renewal provision.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document addendum for the state of Michigan, there are certain unfair provisions that are sometimes included in franchise documents that the state prohibits. If any of these provisions are in the Angry Chickz franchise documents, the provisions are void and cannot be enforced against the franchisee.
Specifically, Angry Chickz cannot enforce a prohibition on the right of a franchisee to join an association of franchisees. They also cannot require that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in the Michigan act. However, this does not prevent a franchisee from settling claims after entering into a franchise agreement.
Additionally, Angry Chickz cannot terminate a franchise prior to the expiration of its term except for good cause, which includes failure to comply with any lawful provision of the franchise agreement, provided the franchisee is given written notice and a reasonable opportunity (up to 30 days) to cure the failure. They also cannot refuse to renew a franchise without fairly compensating the franchisee for the fair market value of inventory, supplies, equipment, fixtures, and furnishings at the time of expiration. This compensation does not apply to personalized materials or items not reasonably required for the business. This only applies if the franchise term is less than 5 years and the franchisee is prohibited from conducting a similar business in the same area after expiration, or if the franchisee does not receive at least 6 months' advance notice of non-renewal. Finally, Angry Chickz cannot refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances; however, this does not require a renewal provision.