What constitutes 'good cause' for Angry Chickz to repurchase a franchisee's business?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, specifically the addendum for the state of Michigan, 'good cause' for terminating a franchise agreement includes the franchisee's failure to comply with any lawful provision of the franchise agreement.
However, Angry Chickz must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The addendum specifies that this cure period does not need to exceed 30 days. This means that if a franchisee violates a term of the agreement, Angry Chickz must give them a written warning and at least some time (up to 30 days) to fix the problem before terminating the agreement.
This provision is important for prospective franchisees in Michigan as it outlines the circumstances under which Angry Chickz can terminate the franchise agreement before its expiration. It also provides some protection to the franchisee by requiring Angry Chickz to give them a chance to correct any issues before termination. Franchise agreements often contain numerous requirements, so understanding what constitutes a breach and the opportunity to cure it is crucial for franchisees.