What authority and responsibility must the Operating Principal have for the Angry Chickz restaurant?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not an individual, you must designate an "Operating Principal" acceptable to us who will be principally responsible for communicating with us about business, operational and other ongoing matters concerning your Restaurant. The Operating Principal must have the authority and responsibility for the day-to-day operations of your Restaurant, but is not required to own an interest in you.
You (or your Operating Principal) must successfully complete our training program and you must have a Restaurant Leader and adequate staff of employees who have in our judgment, been fully and adequately trained. Your Operating Principal, if applicable, must (a) devote his or her full time and best efforts solely to the operation of your Restaurant; (b) meet our educational, experience, financial and other reasonable criteria for the position, as contained in the Manuals or otherwise in writing; (c) have successfully completed the Initial Training Program; (d) be accepted by us.
At our request, your Operating Principal and Restaurant Leader must sign a written statement to confidentiality agreement regarding the trade secrets described in Item 14 and to conform with the covenants not to compete described in Item 17.
Any person who owns a 20% or greater interest in the franchisee entity must sign an agreement (Exhibit D – Continuing Guaranty) assuming and agreeing to discharge all obligations of the "Franchisee" under the Franchise Agreement. Your spouse must sign a document that makes your spouse liable for all financial obligations under the franchise agreement even though your spouse has no ownership interest in the franchise. This guarantee will place both your and your spouse's marital and personal assets, perhaps including your house, at risk if your franchise fails.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 38–39)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if the franchisee is not an individual, they must designate an Operating Principal who is acceptable to Angry Chickz. This Operating Principal is responsible for communicating with Angry Chickz about business, operational, and other ongoing matters related to the restaurant. The Operating Principal must have the authority and responsibility for the day-to-day operations of the Angry Chickz restaurant. However, the Operating Principal is not required to have an ownership interest in the franchise.
The Operating Principal must successfully complete Angry Chickz's training program. They must also have a Restaurant Leader and a staff of employees who have been adequately trained, in Angry Chickz's judgment. The Operating Principal must devote their full time and best efforts solely to the operation of the Angry Chickz restaurant. They must also meet Angry Chickz's educational, experience, financial, and other reasonable criteria for the position, as outlined in the manuals or in writing. The Operating Principal must also be accepted by Angry Chickz.
Angry Chickz may request that the Operating Principal and Restaurant Leader sign a written confidentiality agreement regarding trade secrets and to conform with non-compete covenants. Any person owning 20% or greater interest in the franchisee entity must sign an agreement assuming and agreeing to discharge all obligations of the Franchisee under the Franchise Agreement. The franchisee's spouse must also sign a document making them liable for all financial obligations under the franchise agreement, even without ownership interest, potentially putting marital and personal assets at risk if the franchise fails.