factual
Where can I find the specific provisions of the franchise and related agreements mentioned in the Angry Chickz Franchise Disclosure Document?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION]
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| assign to us (at our option) all internet web pages, email address, social media listings, domain names and other registrations containing the marks. If applicable, pay liquidated damages. See also "r" below. | ||
| j. Assignment of | § 13.1 | No restriction on our right to assign. |
| contract by | ||
| Franchisor | ||
| k. "Transfer" by | § 13.2.1 | Includes transfer of the agreement or change in ownership of a franchisee which is an entity. |
| franchisee – defined | ||
| Franchisor approval of transfer | § 13.2 | Transfers require our express written consent You must: (i) provide a detailed description of the price and material terms of the transfer/Assignment; (ii) provide us a list of your Owners and others with an interest in the franchise agreement; (iii) have complied with the right of first refusal and we must not have exercised our right of first refusal; (iv) not be in default; (v) be current to your obligations to third parties; (vi) have signed a release and your Owners must have signed a release; (vii) not have any suit or action pending or threatened with respect to your Angry Chickz Restaurant; (viii) pay the Transfer Fee; and (ix) agree to a non-competition agreement accepted to us which agreement is substantially similar to the Franchise Agreement terms. |
| m. Conditions for franchisor approval of transfer | §§ 13.2 – 13.4 | New franchisee must: (i) qualify; (ii) have the right to occupy the location by assignment or assumption of the lease or purchase of the location; (iii) assume the Franchise Agreement or sign a new Franchise Agreement; (iv) agree to refurbish your Angry Chickz Restaurant; and (v) complete training. The franchisee's rights to receive payments in connection with the transfer must be subordinated to our rights to receive payment and the other obligations to us. (See also "r" below). If the new franchisee is a business entity, all holders of a 20% or greater interest in the new franchisee must sign a guaranty. You must reimburse us for all costs and expenses that we incur in connection with such a transfer, including attorneys' fees. |
| Provision | Section in Franchise Agreement | Summary |
| --------------------------------------------------------------------------------------- | ----------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| n. Franchisor's right | § 13.3 | We can match any offer for your business. |
| of first refusal to | ||
| acquire franchisee's | ||
| business | ||
| o. Franchisor's option to purchase franchisee's business | §§ 15.3.1 – 15.3.2 | Upon termination or expiration of your Franchise Agreement, we may purchase such equipment and furnishings as we designate that are associated with your Angry Chickz Restaurants, for the fair market value. You must make customary representations and warranties to us. |
| p. Death or disability of franchisee | § 14.3.2 | Your heirs have 6 months after your death or legal incapacity to enter into a new franchise agreement, if the heirs meet our standards and qualifications. If your heirs do not meet our standards and qualifications, the heirs may sell to a person approved by us. See "m" above. |
| q. Non-competition covenants during the term of the franchise | § 12.1 | Can not engage in "Competitive Activities" which means to, own, operate, lend to, advise, be employed by, or have any financial interest in (i) any restaurant 25% or more of whose gross sales is derived from the sale of boneless breaded chicken, other than an Angry Chickz Restaurant operated pursuant to a validly subsisting Franchise Agreement, or (ii) any business that specializes in developing, owning, operating or franchising restaurants 25% or more of whose gross sales is derived from the sale of boneless breaded chicken, or (iii) any business engaged in the preparation, production or sale, at wholesale, of any boneless breaded chicken food products. "Competitive Activities" shall not include the direct or indirect ownership solely as an investment, of securities of any entity which is traded on any national securities exchange if the owner (i) is not a controlling person of, or a member of a group which controls, such entity and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such entity. |
| r. Non-competition covenants after the franchise is terminated or expires | § 12.1 | No involvement in any Competitive Activities for 24 months within the Protected Area or within a radius of 10 miles from any then-existing Angry Chickz Restaurant. |
| Provision | Section in Franchise Agreement | Summary |
| --------------------------------------------------- | ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| s. Modification of the agreement | § 18.7 | The Franchise Agreement may be modified only by written agreement between the parties. |
| t. Integration/Merger clause | § 18.7 | Only the terms of the Franchise Agreement and other written agreements are binding (subject to applicable state law). Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Not applicable | You and we agree that all arbitrations will be held at a suitable location to be chosen by the arbitrator which is within twenty-five (25) miles of our principal business address at the time that the arbitration action is filed, and you and we both waive the right to a trial by jury to the maximum extent permitted. |
| v. Choice of forum | §§ 17.1 - 17.3 | Any and all claims and actions must be brought or asserted before the expiration of the earlier of (a) the time period for bringing an action under any applicable state or federal statute of limitations; (b) one (1) year after the date upon which a party discovered, or should have discovered, the facts giving rise to an alleged claim; or (c) two (2) years after the first act or omission giving rise to an alleged claim; or its expressly acknowledged and agreed by all parties that such claims or actions shall be irrevocably barred. Claims attributable to underreporting of sales, and claims of the parties for failure to pay monies owed and/or indemnification shall be subject to only the applicable state or federal statute of limitations. These provisions may be subject to applicable state law. |
| w. Choice of law | § 18.6 | California law applies, except for the provisions respecting non-competition, which are governed by local law. |
| w. Choice of law | y 10.0 | These provisions may be subject to applicable state law. |
[Item 17: RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION]
| Provision | Section in Area Development Agreement | Summary | |
|---|---|---|---|
| a. Term of the license | §§ 1.1 and 4.1 | As stated in schedule or until you sign a Franchise Agreement for your last Restaurant necessary to satisfy your Development Obligation, whichever is earlier. | |
| b. Renewal or extension | Not applicable | ||
| of the term | |||
| d. Termination by you | Not Applicable | Subject to state law. | |
| e. Termination by Us | Not Applicable | ||
| without cause | |||
| f. Termination by Us with cause | § 9.1 | We can terminate if you or any of your affiliates materially default under the Area Development Agreement, an individual Franchise Agreement, or any other agreement with us or any of our affiliates. | |
| g. "Cause" defined - defaults which can be cured | § 9.1 | You have 5 days to cure non-payment of fees and 60 days to cure any other default, provided that in the case of a breach or default in the performance of your obligations under any Franchise Agreement or other agreement, the notice and cure provisions of such agreement will control. | |
| h. "Cause" defined - defaults which cannot be cured | § 9.1 | Non curable defaults include: unapproved transfers; failure to meet development obligations, any breach of unfair competition provisions, and failure to meet Financial Covenants. | |
| i. Your obligations on termination/non renewal | § 4.2 | You will have no further right to develop or operate additional Restaurants which are not, at the time of termination, the subject of a then existing Franchise Agreement between you and us. You may continue to own and operate all Restaurants pursuant to then existing Franchise Agreements. | |
| j. Assignment of contract | § 7.1 | No restriction on our right to assign. | |
| by Us | |||
| k. "Transfer" by you - definition | § 7.3 | Includes sale of assets, transfer of the agreement or change in ownership of a franchisee which is an entity. | |
| l. Our approval of transfer by you | § 7.3 | Transfers require our express written consent, which consent may be withheld for any reason at all in our sole judgment | |
| Provision | Section in Area Development Agreement | Summary | |
| --------------------------------------------------------------------- | --------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | |
| Except as described below, you may not transfer your Area Development Agreement or any Franchise Agreement signed pursuant to the Area Development Agreement except with our written consent and a simultaneous assignment of th |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Item 17 provides a summary of key provisions within the Franchise Agreement and Area Development Agreement. These summaries cover topics such as termination, renewal, transfer, and dispute resolution.
For the Franchise Agreement, the table outlines provisions like assignment of contract by Angry Chickz, transfer by the franchisee, conditions for Angry Chickz's approval of a transfer, Angry Chickz's right of first refusal, options for Angry Chickz to purchase the franchisee's business, and what happens in the event of death or disability of the franchisee. It also includes details on non-competition covenants, modifications to the agreement, integration/merger clauses, dispute resolution, choice of forum, and choice of law.
For the Area Development Agreement, the table includes provisions such as the term of the license, renewal or extension options, termination rights for both the franchisee and Angry Chickz (with and without cause), definitions of "cause" for termination, obligations upon termination or non-renewal, assignment of contract by Angry Chickz, definition of "transfer" by the franchisee, and Angry Chickz's approval process for such transfers. Each provision listed includes a reference to the specific section within the respective agreement where the complete terms are detailed. This allows prospective franchisees to easily locate and review the full context of each provision within the legal documents.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.