What does the addendum say about the validity of the Area Development Agreement for Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | CHICKZ FRANCHISING LLC, a California limited liability company ("Company"), and , a ("Franchisee"), with reference to the | | following: | | | 1. Chickz business, Developer will pay to Franchisor the development fee. | In the State of California, Angry Chickz will defer the payment of the development fee attributed to each Angry Chickz business that Developer agrees to develop under this Agreement until that Angry Chickz business opens for business. Upon the opening of each Angry | | 2. | Except as set forth herein, the Area Development Agreement shall be valid and | | enforceable between the parties in accordance with its terms. | | | Addendum as of the Effective Date identified below. | IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this | | "Company" | "Developer" | | ANGRY CHICKZ FRANCHISING LLC, a California limited liability company | , [ ] an individual [ ] a general partnership; [ ] a limited partnership; | | By: | [ ] a limited liability company; | | Name: | [ ] a corporation;
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the addendum modifies the Area Development Agreement but generally upholds its validity. Specifically, the addenda for California, Virginia, Rhode Island, and Illinois state that, except as explicitly modified within the addendum itself, the Area Development Agreement remains valid and enforceable according to its original terms. This indicates that while certain provisions may be altered to comply with state-specific regulations or address particular concerns, the core agreement remains in effect.
For a prospective Angry Chickz area developer, this means the fundamental obligations and rights outlined in the Area Development Agreement are still binding. However, it is crucial to carefully review the addendum applicable to their specific state to understand any modifications. These modifications can include, but are not limited to, deferral of initial fee payments until certain pre-opening obligations are met or the first location opens, changes to jurisdiction and venue for legal disputes, and stipulations regarding waivers of claims under state franchise laws.
The presence of these addenda highlights the importance of understanding state-specific franchise laws and how they impact the Area Development Agreement. While Angry Chickz aims to maintain the agreement's validity, franchisees must be aware of any alterations that could affect their rights or obligations. It is advisable to consult with a legal professional experienced in franchise law to fully comprehend the implications of the Area Development Agreement and its addendum within the relevant state.