For Angry Chickz, what must a developer do within each Development Period specified in Exhibit B to meet their Development Obligation?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.1.1 Within each Development Period specified in Exhibit B, Developer shall construct, equip, open and thereafter continue to operate within the Development Area, not less than the cumulative number of Dine-In Restaurants required by the Development Obligation for that Development Period. Restaurants developed hereunder which are open and operating and which have been assigned to Affiliates of Developer in accordance with Section 7.2.2 with Company's consent, shall count in determining whether Developer has satisfied the Development Obligation for so long as the applicable Affiliate continues to satisfy the conditions set forth in Section 7.2.2.
- 2.1.2 If, during the Term, Developer ceases to operate any Restaurant developed and opened under this Agreement with Company's prior written consent and for no other reason, Developer must develop a replacement Restaurant (a "Replacement Restaurant") in the Development Area to fulfill Developer's obligation to have constructed, equipped, opened and thereafter operate the required number of Restaurant at the expiration of each Development Period. Developer may not, however, cease operating any Restaurant or obtain a Replacement Restaurant without Company's prior written consent. Developer must construct, equip, open and thereafter operate each Replacement Restaurant within 12 months after the date of the closing of the Restaurant that it will replace. During such 12-month period, the Replacement Restaurant shall be considered open and operated for purposes of determining Developer's compliance with the Development Obligation.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a developer must construct, equip, open, and continuously operate a minimum cumulative number of dine-in restaurants within their designated Development Area during each Development Period, as outlined in Exhibit B of the Area Development Agreement.
Restaurants that are open and operating, and have been assigned to Affiliates of the Developer with Angry Chickz's consent, will count toward fulfilling the Development Obligation, provided the Affiliate continues to meet the conditions specified in Section 7.2.2 of the agreement.
If a developer ceases to operate a restaurant that was developed and opened under the agreement, they must develop a Replacement Restaurant within 12 months of the closing date of the original restaurant. This requires Angry Chickz's prior written consent. During this 12-month period, the Replacement Restaurant is considered open and operating for the purpose of determining compliance with the Development Obligation.