What cure period does an Angry Chickz area developer have for non-payment of fees under § 9.1?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary | |
|---|---|---|---|
| a. Term of the license | §§ 1.1 and 4.1 | As stated in schedule or until you sign a Franchise Agreement for your last Restaurant necessary to satisfy your Development Obligation, whichever is earlier. | |
| b. Renewal or extension | Not applicable | ||
| of the term | |||
| d. Termination by you | Not Applicable | Subject to state law. | |
| e. Termination by Us | Not Applicable | ||
| without cause | |||
| f. Termination by Us with cause | § 9.1 | We can terminate if you or any of your affiliates materially default under the Area Development Agreement, an individual Franchise Agreement, or any other agreement with us or any of our affiliates. | |
| g. "Cause" defined - defaults which can be cured | § 9.1 | You have 5 days to cure non-payment of fees and 60 days to cure any other default, provided that in the case of a breach or default in the performance of your obligations under any Franchise Agreement or other agreement, the notice and cure provisions of such agreement will control. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, an area developer has a specific timeframe to correct a failure to pay fees. If an Angry Chickz area developer fails to make required payments, they have a 5-day period to resolve the non-payment. This cure period is explicitly tied to Section 9.1 of the Area Development Agreement, which outlines the conditions under which Angry Chickz can terminate the agreement due to a developer's default.
It's important to note that this 5-day cure period applies specifically to the non-payment of fees. Other types of defaults under the Area Development Agreement have a longer cure period of 60 days. However, the document also states that if the default pertains to obligations under any Franchise Agreement or other agreement, the notice and cure provisions of that specific agreement will take precedence. This means that the cure period could vary depending on the nature of the default and the specific agreement involved.
Prospective Angry Chickz area developers should be aware of these cure periods and ensure they have systems in place to promptly address any payment issues. Failing to cure a non-payment default within the 5-day period could lead to termination of the Area Development Agreement. Understanding these terms is crucial for maintaining a good standing with Angry Chickz and fulfilling the obligations of the development agreement.