What covenants is an Angry Chickz developer required to obtain from Restricted Persons?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Covenant Not to Sue.** Franchisee and Guarantors (on behalf of Releasors) covenant not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any person or entity released under Section 1 with respect to any Claim released under Section 1.
- **6.
Complete Defense.** Franchisee and Guarantors: (a) acknowledge that the release in Section 1 shall be a complete defense to any Claim released under Section 1; and (b) consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such Claim.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document, if a franchisee and guarantors are acting on behalf of releasors, they must agree to a covenant not to sue. This means they cannot initiate, prosecute, encourage, assist, or participate in any legal proceedings against anyone released under Section 1 of the agreement, except if required by law. This includes civil, criminal, or administrative actions in any court, agency, or forum, whether affirmatively or as a defense.
Furthermore, the franchisee and guarantors must acknowledge that the release in Section 1 serves as a complete defense against any claim released under that section. They must also consent to a temporary or permanent injunction to prevent or stop the assertion of any such claim. This ensures that Angry Chickz and related parties are protected from legal actions related to the released claims.
These covenants are designed to provide Angry Chickz with legal protection and prevent future litigation related to claims that have been released. For a prospective franchisee, this means understanding the scope of the release and ensuring that all parties involved are aware of their obligations not to pursue legal action. It is advisable to seek legal counsel to fully understand the implications of these covenants before signing any agreements.