Can Angry Chickz enforce the agreement solely, jointly, or not at all with the franchisee?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, Angry Chickz, as a third-party beneficiary to the agreement, has the right to enforce the franchise agreement either solely or jointly with the franchisee. This means that Angry Chickz can take legal action against a party who violates the agreement, either on its own or together with the franchisee.
This provision is significant for prospective franchisees because it clarifies the franchisor's ability to protect its brand and system standards. If a franchisee violates the agreement, both Angry Chickz and the other franchisees have a vested interest in ensuring compliance. The ability to enforce the agreement helps maintain consistency and quality across the Angry Chickz franchise network.
The FDD also states that a violation of the agreement will cause irreparable harm to both Angry Chickz and the franchisee. As a result, Angry Chickz and/or the franchisee can seek an injunction to prevent further violations. The violating party is responsible for covering all costs, including attorney's fees, incurred in enforcing the agreement. This clause emphasizes the importance of adhering to the franchise agreement and the potential financial consequences of non-compliance.
Furthermore, any claims a franchisee may have against Angry Chickz or another franchisee are considered separate matters and do not justify violating the franchise agreement. This ensures that franchisees cannot use disputes as a reason to disregard their contractual obligations. If any part of the agreement is deemed invalid by a court or agency, the remaining portions of the agreement remain enforceable to the extent deemed reasonable by the court or agency.