factual

Who bears the expense of remodeling, renovation, modernization, or refurbishing of the premises for an Angry Chickz franchise successor term?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 5.5.2 In addition to Franchisee's obligations under Section 5.5.1, but not more frequently than once every five (5) years during the Term, and as a condition to Franchisee's exercising its Successor Agreement Right, Company may require Franchisee, at Franchisee's sole cost and expense, to refurbish, remodel and improve the Franchised Business to conform to the then-current Standards for new Restaurants.

Such remodeling may include structural changes to the Franchised Business and replacement or modification of FFE, décor, and trade dress as well as such other changes as Company may direct.

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to the 2025 Angry Chickz Franchise Disclosure Document, the franchisee is responsible for the costs associated with refurbishing, remodeling, and improving the franchised business to meet the then-current standards for new restaurants, including during a successor term. This obligation is at the franchisee's sole cost and expense. This is also a condition of the franchisee's exercising its Successor Agreement Right.

The remodeling may include structural changes, replacement or modification of furniture, fixtures, and equipment (FFE), décor, and trade dress, as well as other changes directed by Angry Chickz. The frequency of required remodeling is limited to no more than once every five years during the term.

This requirement means that franchisees need to factor in potential significant capital expenditures for remodeling into their long-term financial planning. Failing to maintain the standards or complete the required remodeling could impact the franchisee's ability to renew their franchise agreement. Franchisees should clarify with Angry Chickz what the typical scope and cost of such remodels have been for existing locations to better estimate these future expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.