Who does the Angry Chickz agreement benefit, besides the parties involved?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **8.
Third Party Beneficiary.** ANGRY CHICKZ and its parent, affiliates and subsidiaries shall be third party beneficiaries under this Release.
Restaurants within the Protected Area of the Franchisee or within a 10 mile radius from any then-existing Angry Chickz restaurant.
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- The Franchisor is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Franchisor and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisor and/or the Franchisee may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisor and the Franchisee all the costs it (they) incur(s), including, without limitation, attorneys' fees, if this Agreement is enforced against me. Due to the importance of this Agreement to the Franchisor and the Franchisee, any claim I have against the Franchisor or the Franchisee is a separate matter and does not entitle me to violate, or justify any violation of, this Agreement. If any part of this Agreement is held invalid by a court or agency, the rest of the Agreement is still enforceable and the part held invalid is enforceable to the extent found reasonable by the court or agency.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, besides the franchisee and Angry Chickz Franchising LLC, the parent, affiliates, and subsidiaries of Angry Chickz are considered third-party beneficiaries under the release agreement. This means that these related entities can also benefit from and enforce the terms of the release.
Additionally, in agreements related to protected areas, the Franchisor is a third-party beneficiary and can enforce the agreement either independently or jointly with the Franchisee. This is particularly relevant in cases where a violation of the agreement could cause irreparable harm to both the Franchisor and the Franchisee. In such instances, both parties have the right to seek legal remedies, such as an injunction, to prevent further breaches of the agreement.
This arrangement ensures that Angry Chickz and its related entities have the legal standing to protect their interests and brand integrity, even if they are not direct parties to the specific agreement between the franchisee and another party. For a prospective franchisee, this highlights the importance of understanding all aspects of the franchise agreement and related documents, as their actions could have implications for a broader range of beneficiaries beyond just themselves and the immediate franchisor.