Besides non-payment of fees, how many days does an Angry Chickz franchisee have to cure other defaults?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
t applicable | Subject to state law. | | franchisee | | | | e. Termination by | Not applicable | | | Franchisor without | | | | cause | | |
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| f. Termination by Franchisor with cause | §§ 14.1 – 14.7 | We can terminate only if you default under your Franchise Agreement. | |
| g. "Cause" defined – curable defaults | § 14.4 | You have 5 days to cure non-payment of fees and 30 days to cure defaults not listed in Section 14.3 of your Franchise Agreement | |
| h. "Cause" defined – non-curable defaults | §§ 14.2 – 14.3 | Non curable defaults: (i) bankruptcy or insolvency, admission of its inability to meet its financial obligations, or shall making a disposition for the benefit of its creditors; |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee has a specific timeframe to correct defaults other than the non-payment of fees. Specifically, regarding the Franchise Agreement, if a franchisee defaults for reasons other than non-payment of fees, they are provided 30 days to resolve the issue.
However, the Area Development Agreement offers a different cure period. For defaults not involving fee payments, an Area Developer is granted 60 days to rectify the default. It is important to note a caveat: if the default pertains to obligations under a Franchise Agreement or any other agreement, the cure provisions outlined in that specific agreement will take precedence.
This discrepancy highlights the importance of understanding which agreement is in effect and the nature of the default. Franchisees and Area Developers should carefully review the default and cure provisions within each agreement to ensure compliance and avoid potential termination of their agreements with Angry Chickz.