Are the covenants in the Angry Chickz agreement still enforceable after the agreement expires?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.5 Survival of Covenants.
The covenants contained in this Agreement which, by their nature or terms, require performance by the parties after the expiration or termination of this Agreement shall be enforceable notwithstanding said expiration or other termination of this Agreement for any reason whatsoever.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, specifically section 12.5, certain covenants within the franchise agreement remain enforceable even after the agreement's expiration or termination. These are covenants that, by their nature or specific terms, necessitate continued performance by both parties beyond the agreement's active period. This provision ensures that obligations like non-compete clauses or confidentiality agreements, which are designed to protect Angry Chickz's interests, continue to be upheld even after the franchise relationship concludes.
For a prospective Angry Chickz franchisee, this means that certain responsibilities and restrictions outlined in the franchise agreement will extend beyond the agreement's formal end date. It is crucial to carefully review the franchise agreement to understand which specific covenants survive termination and what obligations they entail. This could include restrictions on operating a similar business in a defined area or maintaining the confidentiality of proprietary information.
This type of clause is relatively common in franchise agreements, as franchisors seek to protect their brand and business model. Franchisees should pay close attention to the scope and duration of these surviving covenants to fully understand their post-franchise obligations. Consulting with an attorney to review the franchise agreement is advisable to ensure a clear understanding of these long-term commitments.
It is important to note that the enforceability of such covenants can vary by state. For example, the FDD mentions that a covenant not to compete which extends beyond the termination of the franchise may not be enforceable under California law. Therefore, franchisees should be aware of the specific laws in their state that may affect the enforceability of these provisions.