In a dispute involving Angry Chickz, who is responsible for paying attorney fees and costs?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- The Franchisor is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Franchisor and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisor and/or the Franchisee may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisor and the Franchisee all the costs it (they) incur(s), including, without limitation, attorneys' fees, if this Agreement is enforced against me. Due to the importance of this Agreement to the Franchisor and the Franchisee, any claim I have against the Franchisor or the Franchisee is a separate matter and does not entitle me to violate, or justify any violation of, this Agreement. If any part of this Agreement is held invalid by a court or agency, the rest of the Agreement is still enforceable and the part held invalid is enforceable to the extent found reasonable by the court or agency.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if a franchisee violates their agreement, they may be responsible for covering Angry Chickz's legal expenses. Specifically, if Angry Chickz or the franchisee has to take legal action to enforce the agreement against the franchisee, the franchisee agrees to pay all costs incurred, including attorney's fees. This obligation arises from actions such as operating restaurants outside the permitted area.
This means that if an Angry Chickz franchisee breaches the franchise agreement, leading to legal enforcement by Angry Chickz, the franchisee will have to pay not only their own legal costs but also those incurred by Angry Chickz. This could include a range of expenses, such as court fees, attorney hourly charges, and other related costs. This stipulation is designed to discourage franchisees from violating the terms of their agreement and to protect Angry Chickz's interests and brand integrity.
It is important to note that any claims the franchisee has against Angry Chickz or another franchisee are considered separate matters and do not justify violating the agreement. This clause emphasizes the franchisee's responsibility to adhere to the agreement regardless of any grievances they might have. Franchisees should be aware of this clause and understand the potential financial burden they could face if they are found in violation of their franchise agreement, necessitating legal action from Angry Chickz.