Can an Angry Chickz developer create obligations on behalf of the company in the lease agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2.2 If the accepted location is leased or subleased, (i) the lease shall name Developer as the sole lessee thereunder, and may not be subleased to Developer by any Affiliate of Developer or any of its Owners without Company's express prior written consent; (ii) Developer shall neither create nor purport to create any obligations on behalf of Company, nor grant or purport to grant to the lessor thereunder any rights against Company, nor agree to any other term, condition, or covenant which is inconsistent with any provision of this Agreement; (iii) the lease shall be for a term which is not less than the term of the Franchise Agreement, unless Company shall approve, in writing, a shorter term of the lease; (iv) the lease shall be subject to Company's then-current lease addendum and contain such terms as required by the Standards; (v) Developer shall duly and timely perform all of the terms, conditions, covenants and obligations imposed upon Developer under the lease; and (vi) a fully executed copy of said lease, in the form and on the terms previously accepted by Company, shall be delivered to Company promptly following the execution thereof.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, an Angry Chickz developer is explicitly prohibited from creating obligations on behalf of the company in a lease agreement. Specifically, the lease must name the developer as the sole lessee and the developer cannot create or purport to create any obligations on behalf of Angry Chickz.
This restriction ensures that Angry Chickz Franchising LLC is not held liable for the developer's lease obligations. It also prevents the developer from granting any rights to the lessor that could negatively impact Angry Chickz. The developer must also ensure that the lease term is not less than the term of the Franchise Agreement, unless Angry Chickz approves a shorter term in writing.
Furthermore, the lease must be subject to Angry Chickz's current lease addendum and contain terms required by the company's standards. The developer is responsible for performing all obligations under the lease in a timely manner and must provide Angry Chickz with a fully executed copy of the lease in the form and on the terms previously accepted by the company. This ensures Angry Chickz maintains control over lease terms and conditions, protecting its interests and brand standards.
Angry Chickz's review and acceptance of the lease is solely for its own benefit, indicating that the lease meets the company's minimum standards at the time of acceptance. However, this review does not constitute an endorsement of the lease, a confirmation of compliance with applicable law, or a confirmation that the lease terms are favorable to the developer. Angry Chickz expressly disclaims any responsibility in these areas, emphasizing the developer's responsibility to ensure the lease terms are suitable for their business needs and compliant with all relevant regulations.