Is the Angry Chickz company's acceptance of an Operating Principal a guarantee of their performance?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Company's acceptance of the Operating Principal shall not constitute Company's endorsement of such individual or a guarantee by Company that such individual will perform adequately for Franchisee or its Affiliates, nor shall Company be estopped from subsequently disapproving or otherwise challenging such person's qualifications or performance.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz's acceptance of an Operating Principal does not guarantee the individual's performance. While Angry Chickz must find the Operating Principal acceptable, this acceptance isn't an endorsement or a guarantee that the person will perform adequately for the franchisee.
The FDD emphasizes that the franchisee is responsible for the performance of their Operating Principal. Even though Angry Chickz may interact with and even train the Operating Principal, the franchisee retains the ultimate responsibility for ensuring the restaurant's operations meet Angry Chickz's standards.
Furthermore, Angry Chickz retains the right to disapprove or challenge the Operating Principal's qualifications or performance even after initially accepting them. This protects Angry Chickz if the Operating Principal's performance later declines or proves inadequate. This clause underscores that the franchisee bears the risk of the Operating Principal's performance, not Angry Chickz.
This arrangement is typical in franchising, where the franchisee is an independent business owner responsible for their employees' actions. While the franchisor sets standards and may provide training, the franchisee manages day-to-day operations and personnel.