What is the 'Effective Date' referring to in the Angry Chickz Franchise Agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS FRANCHISE AGREEMENT ("Agreement") is made this day of , 20 ("Effective Date") by and between Angry Chickz Franchising LLC, a California limited liability company ("Company"), and , a(n) ("Franchisee"). | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | RECITALS | IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
ARTICLE 3 TERM AND RIGHT TO ENTER INTO SUCCESSOR FRANCHISE AGREEMENT
3.1 Initial Term. The term of this Agreement ("Term") shall commence on the Effective Date and shall expire on tenth (10th) anniversary of the Opening Date(the "Expiration Date"), unless sooner terminated or extended in accordance with this Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Effective Date refers to the day the Franchise Agreement is made between Angry Chickz Franchising LLC and the franchisee. The agreement specifies that it is made this day of, 20, which is considered the Effective Date.
This date is significant because it marks the commencement of the agreement's term. According to Article 3.1, the term of the agreement begins on the Effective Date and extends until the tenth anniversary of the Opening Date, unless terminated or extended earlier. Therefore, the Effective Date is the starting point for calculating the duration of the franchise agreement.
Furthermore, the document includes a section for signatures, indicating that the parties have executed the agreement 'as of the Effective Date.' This reinforces the importance of the Effective Date as the point in time when both Angry Chickz and the franchisee formally enter into the contractual obligations outlined in the Franchise Agreement.