What condition triggers the requirement for an Angry Chickz franchisee to refurbish, remodel, and improve the Franchised Business?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
onsents in writing to a longer period of time. The time periods for the commencement and completion
of construction and the commencement of operation of the Franchised Business are of the essence of this Agreement.
5.5 Maintaining and Remodeling of Franchised Business.
- 5.5.1 Franchisee shall maintain the condition and appearance of the Franchised Business that meets Company's standards and operation consistent with the image of Restaurants as attractive, clean, and efficiently operated, offering high quality goods and services, courteous service, and pleasant ambiance. If at any time in Company's reasonable judgment, the state of repair, appearance, cleanliness or functionality of Franchised Business (including the Premises and non-Franchised Business portion of the Premises and parking areas) or its FFE, décor and trade dress fail to meet the Standards, Company shall provide written notice to Franchisee. Franchisee shall promptly upon receipt of notice correct such deficiencies, that may include replacing worn out or obsolete FFE, signage, décor and trade dress; repairing and repainting the interior and exterior of the Franchised Business, the Premises and appurtenant parking areas (if any); and modifying the décor and layout of the Franchised Business to implement changes in required Standards; all within the time period(s) prescribed by Company. Without limiting the foregoing, Franchisee shall immediately abate, replace, and remove any graffiti in or about the Premises.
- 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. Franchisee shall undertake such work upon notice from Company, and shall complete any such remodeling as expeditiously as possible, but in any event (i) within 90 days of notice if the investment necessary to complete such work is less than $75,000; and (ii) within in 6 months of notice if the investment necessary to complete such work is more than $75,000. Franchisee shall provide Company with a time schedule for the construction and remodeling of the Franchised Business. Company shall not be liable to Franchisee on account of any lost income, profits, opportunities, or otherwise as a result of being required to undergo the remodeling.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, there are a couple of conditions that would trigger a remodel.
First, under Section 5.5.1, if Angry Chickz determines that the Franchised Business's condition, appearance, cleanliness, or functionality (including the premises, parking areas, FFE, decor, and trade dress) does not meet the company's standards, they will provide written notice to the franchisee. The franchisee must then correct these deficiencies, which may include replacing items, repairs, repainting, and modifications to meet the required standards.
Second, according to section 5.5.2, Angry Chickz may require the franchisee to refurbish, remodel, and improve the Franchised Business to conform to the then-current standards for new Restaurants. This can occur no more than once every five years during the term of the agreement or as a condition to the franchisee's exercising its Successor Agreement Right. This remodeling may include structural changes, replacement or modification of FFE, décor, and trade dress, as well as other changes directed by Angry Chickz.
Finally, under section 5.5.3, if the Franchised Business is damaged or destroyed by fire or any other casualty, Angry Chickz may require that Franchisee repair or reconstruct the Premises and Franchised Business in conformance with the Standards for new Restaurants, if Angry Chickz determines that it is feasible to do so.