What is the consequence for an Angry Chickz Developer's failure to satisfy the Development Obligation within the Development Periods?

According to the 2025 Angry Chickz Franchise Disclosure Document, a Developer's failure to meet the Development Obligation within the specified Development Periods constitutes an event of default.

The FDD specifies that 'Default' includes the failure of the Developer to satisfy the Development Obligation within the Development Periods. This means that if the Developer does not open the required number of Angry Chickz restaurants within the agreed-upon timeframe for each development period, they will be in default of the Area Development Agreement.

It's important to note that the Development Period can be extended under specific circumstances, such as Force Majeure (unforeseeable circumstances) or if Angry Chickz is legally unable to deliver a Franchise Disclosure Document. However, the Developer must provide written notice to Angry Chickz within 5 days of the commencement of the Force Majeure event, describing the nature and impact of the event. Failure to provide timely notice constitutes a waiver of the right to claim Force Majeure.

The FDD excerpt does not specify the exact consequences of default, but it is reasonable to assume that Angry Chickz would have the right to terminate the Area Development Agreement. A prospective franchisee should carefully review the Area Development Agreement to understand the specific remedies available to Angry Chickz in the event of a default, including potential loss of development rights and fees.