How does an Angry Chickz franchisee exercise their Successor Agreement Right?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
3.3 Form and Manner of Exercising Successor Agreement Right. If available, the Successor Agreement Right shall be exercised only in the following manner:
- 3.3.1 Between 9 months and 12 months before the expiration of the Term, Franchisee shall notify Company in writing ("Notice of Election") that it intends to exercise its Successor Agreement Right. No sooner than immediately after the expiration of any waiting period(s) required by Applicable Law, and no more than 30 days after Franchisee receives Company's franchise disclosure document (if applicable), Franchisee shall execute the copies of the Successor Franchise Agreement and return them to Company.
- 3.3.2 If Franchisee exercises its Successor Agreement Right in accordance with Section 3.3.1 and satisfies all of the conditions contained in
Section 3.4, Company shall execute the Successor Franchise Agreements and promptly deliver one fully executed copy to Franchisee.
3.3.3 If Franchisee fails timely to perform any of the acts, or timely to deliver any of the notices required pursuant to the provisions of Sections 3.3 or 3.4 such failure shall be deemed an election by Franchisee not to exercise its Successor Agreement Right and shall automatically cause Franchisee's Successor Agreement Right to lapse and expire.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee can exercise their Successor Agreement Right to enter into a new franchise agreement for two successive five-year periods, provided they meet certain conditions. To exercise this right, the franchisee must notify Angry Chickz in writing between 9 and 12 months before the expiration of the current term, indicating their intent to renew. This written notification is termed the "Notice of Election."
Following the Notice of Election, the franchisee must execute and return copies of the Successor Franchise Agreement to Angry Chickz. This must be done no sooner than the expiration of any legally required waiting period and no more than 30 days after receiving Angry Chickz's franchise disclosure document, if applicable. If the franchisee fulfills these obligations and meets all the conditions outlined in Section 3.4 of the franchise agreement, Angry Chickz will then execute the Successor Franchise Agreement and provide a fully executed copy to the franchisee.
Failure to comply with the specified timelines or to deliver the required notices will result in the franchisee's Successor Agreement Right lapsing and expiring. This means that strict adherence to the outlined procedures and deadlines is crucial for an Angry Chickz franchisee seeking to extend their franchise term. Additionally, the franchisee must meet certain conditions such as Angry Chickz offering franchises in the state where the location is, the franchisee not being in default of their obligations, and completing any required remodeling or renovations.