What is the definition of 'Proprietary Systems' in the Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3.3 If Company shall designate certain computer software or hardware which is owned or licensed by Company ("Proprietary Systems"), Franchisee shall at Company's request license or sublicense such hardware or software from Company or its designee and enter into a (sub)license agreement on Company's or such designee's then-current form. From time to time, Franchisee shall purchase any upgrades, enhancements or replacements to the Proprietary Systems. Company and its Affiliates may charge Franchisee up-front and ongoing fees for any Proprietary Systems that Company or its Affiliates license to Franchisee. Company may provide to Franchisee, for a fee, such support services relating to the Proprietary Software as Company deems advisable.
- 7.3.4 Company may modify the Standards relating to the Information Systems and Proprietary Systems which may require Franchisee, at Franchisee's sole cost and expense, to add, update, upgrade or replace the Information Systems, including hardware and/or software. Franchisee must
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Proprietary Systems are defined as specific computer software or hardware owned or licensed by Angry Chickz. If Angry Chickz designates certain software or hardware as Proprietary Systems, the franchisee is required to license or sublicense such items from Angry Chickz or its designee. This arrangement necessitates entering into a (sub)license agreement based on Angry Chickz's or the designee's current form.
Furthermore, the franchisee is obligated to purchase any upgrades, enhancements, or replacements to these Proprietary Systems as they become available. Angry Chickz and its affiliates retain the right to charge franchisees both up-front and ongoing fees for the use of these licensed Proprietary Systems. Additionally, Angry Chickz may offer support services related to the Proprietary Software for a fee, should they deem it advisable.
Angry Chickz also reserves the right to modify the standards pertaining to both the Information Systems and Proprietary Systems. These modifications may require the franchisee, at their own expense, to add, update, upgrade, or replace the existing Information Systems, including both hardware and software components. The franchisee is then obligated to incorporate any required modifications or additions within a reasonable period after receiving written notice from Angry Chickz.