Does an Angry Chickz developer have the right to renew or extend the Area Development Agreement term?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Term. The term of this Agreement shall commence on the Effective Date and, unless otherwise negotiated, terminated, or extended as provided herein, shall continue until the Expiration Date (the "Term"). At the end of the Term, this Agreement shall be deemed expired.
- 4.2 Effect of Expiration. Developer shall have no right to renew or extend the Term or have an option to enter into any successor area development agreement. Following the expiration of the Term, or the sooner termination of this Agreement, (a) Developer shall have no further right to construct, equip, own, open or operate additional Restaurants which are not, at the time of such termination or expiration, the subject of a then existing Franchise Agreement between Developer (or an Affiliate of Developer) and Company which is then in full force and effect, and (b) Company or its Affiliates may thereafter itself exercise all of its rights, including the right to construct, equip, open, own or operate, franchise, and license others to (or grant development rights to) construct, equip, open, own or operate Restaurants at any location(s) (within or outside of the Development Area), without any restriction, subject only to any territorial rights granted for any then-existing Restaurants pursuant to a validly subsisting Franchise Agreement executed for such Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, an Area Developer does not have the right to renew or extend the Area Development Agreement term. The agreement's term commences on the effective date and continues until the expiration date, unless it is negotiated, terminated, or extended as provided in the agreement. Upon expiration of the term, the agreement is deemed expired.
Following the expiration or termination of the Area Development Agreement, the developer loses the right to construct, equip, own, open, or operate additional Angry Chickz restaurants, except for those already under a franchise agreement. Angry Chickz or its affiliates then have the right to operate or franchise restaurants in any location, including those within the developer's former development area, without restriction.
This means that an Area Developer needs to carefully consider the initial term of the agreement and ensure they can fulfill their development obligations within that timeframe. Failure to do so could result in losing the opportunity to further expand their Angry Chickz business within their designated area.