What conditions might Angry Chickz impose when granting consent for a developer to open an 'Excess Restaurant'?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, Developer may develop and thereafter construct, equip, open and operate pursuant to individual Franchise Agreements more than the total number of Dine-In Restaurants comprising the total Development Obligation (each an "Excess Restaurant") with Company's prior written consent, which consent may be conditioned on among other things, the payment of additional fees (except as provided below) and/or the execution of an amendment to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a developer who wishes to open more restaurants than their development obligation requires (referred to as an "Excess Restaurant") must obtain prior written consent from Angry Chickz. This consent is not guaranteed and may be subject to certain conditions.
Specifically, Angry Chickz may condition its consent on the payment of additional fees. This means that the developer might have to pay extra money to Angry Chickz in order to be allowed to open the additional restaurant. The FDD also states that Angry Chickz may require the developer to execute an amendment to the existing Area Development Agreement. This implies that the terms of the original agreement could be modified to accommodate the Excess Restaurant, potentially affecting the developer's obligations or rights.
In summary, while the Area Development Agreement allows for the possibility of opening more restaurants than initially agreed upon, Angry Chickz retains significant control over this process. They can impose financial burdens and alter the contractual terms, which a prospective developer should carefully consider. It is important for potential developers to discuss these conditions with Angry Chickz to fully understand the potential costs and obligations associated with opening an Excess Restaurant.