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What is the dependency regarding the operation of the Franchised Business in conformity with the Angry Chickz franchise agreement?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

7.1 Compliance with Standards and Applicable Law. Franchisee acknowledges and agrees that operating and maintaining the Franchised Business according to the System and Standards are essential to preserve the goodwill of the Marks and all Restaurants. Therefore, Franchisee shall comply in the System and operate the Franchised Business in strict compliance with the Standards and Manual(s). The Standards and the Manuals(s) may regulate any or all aspects of the operation and maintenance of the Franchised Business. Without limiting the foregoing, Franchisee shall operate the Franchised Business as a clean, orderly, lawful and respectable place of business in accordance with the Standards and in accordance with Applicable Law. Franchisee shall not knowingly cause or allow any part of its Franchised Business to be used for any immoral or illegal purpose. Franchisee at all times shall provide high quality and professional, prompt, courteous, and efficient goods and services to customers and at all times at professionally and courteous to members of the public. Without limiting its other rights, Company may, in its sole discretion, contract with a third party to conduct sanitation and food safety audits of the Franchised Business periodically throughout the Term, but no less than once per calendar year. Franchisee shall reimburse Company for the cost of such sanitation and food safety audits. Franchisee will conform to the highest standards of honesty, integrity, fair dealing and ethical conduct. Franchisee shall not engage in any action which will cause Company to be in violation of any Applicable Law. Franchisee shall refrain from engaging in action (or failing to take any action), which in the reasonable opinion of Company, causes or could cause damage, harm or injury to the Marks, and/or System.

7.2 Operating Principal and Management Employees.

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees must operate and maintain their franchised business according to the Angry Chickz system and standards. Compliance with these standards is crucial for preserving the goodwill associated with the Angry Chickz marks and restaurants. Franchisees are required to strictly adhere to the standards and manuals, which may regulate various aspects of the business's operation and maintenance. This includes maintaining a clean, orderly, lawful, and respectable place of business, in accordance with all applicable laws. Franchisees must also provide high-quality, professional, prompt, courteous, and efficient service to customers and the public.

Angry Chickz may contract with a third party to conduct sanitation and food safety audits of the franchised business periodically, but no less than once per calendar year, and the franchisee is responsible for reimbursing Angry Chickz for the cost of these audits. Franchisees must maintain high standards of honesty, integrity, fair dealing, and ethical conduct, and must not take any action that could cause Angry Chickz to violate any applicable law or harm the Angry Chickz marks or system.

Furthermore, franchisees must ensure that all personnel wear uniforms in accordance with Angry Chickz's standards and maintain a neat and clean appearance. Employees working in the franchised business should be dedicated solely to that business unless Angry Chickz provides written consent otherwise. Franchisees are also prohibited from engaging in any co-branding activities without prior written consent from Angry Chickz. These requirements ensure that each Angry Chickz location operates consistently and maintains the brand's reputation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.