Does the Angry Chickz Area Development Agreement specify that the Developer is responsible for costs arising from the operation of Restaurants?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 Indemnity by Developer. Developer hereby agrees to protect, defend and indemnify Company, and all of its past, present and future Owners, Affiliates, officers, directors, employees, attorneys and designees and hold them harmless from and against any and all costs
and expenses, including attorneys' fees, court costs, losses, liabilities, damages, claims and demands of every kind or nature on account of any actual or alleged loss, injury or damage to any person, individual or Entity or to any property arising out of or in connection with Developer's construction, development and/or operation of Restaurants pursuant hereto, except to the extent caused by intentional acts of the Company in breach of this Agreement. The terms of this Section 12.2 shall survive the termination, expiration or cancellation of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, the Area Development Agreement stipulates that the Developer is responsible for costs associated with the operation of Restaurants. Specifically, the Developer agrees to protect, defend, and indemnify Angry Chickz from any costs and expenses, including attorney's fees, losses, liabilities, damages, claims, and demands arising from the construction, development, and operation of Restaurants. This obligation extends to any loss, injury, or damage to any person or property in connection with the Developer's activities.
This means that as an Angry Chickz area developer, you are assuming significant financial responsibility for any issues that arise during the construction, development, or operation of the restaurants in your designated area. This includes not only direct costs but also legal expenses and potential liabilities from lawsuits or claims. The franchisor is protected from financial burdens related to your actions as a developer.
This requirement is a standard practice in franchising, where franchisees and developers typically bear the responsibility for their business operations. However, the scope of the indemnity clause in the Angry Chickz agreement is broad, covering a wide range of potential liabilities. It is important to note that this responsibility does not extend to intentional acts of Angry Chickz that breach the agreement.
Prospective Angry Chickz developers should carefully review this section of the Area Development Agreement with legal counsel to fully understand the extent of their financial obligations and potential risks. Understanding the scope of this indemnity is crucial for managing potential liabilities and ensuring the long-term financial health of the development venture.