Can an Angry Chickz franchisee participate in the defense or settlement of a claim at their own expense?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may participate at its own expense in such defense or settlement, but Company's decisions with regard to the disposition of a claim shall be final.
Franchisee agrees not to communicate with any person or Entity other than Company and its licensor, their respective attorneys, and Franchisee's attorneys regarding any infringement, challenge or claim.
- 11.5 Modification of Marks.
From time to time Company may add to, delete or modify any or all of the Marks and trade dress.
Franchisee shall, use, or cease using, the Marks and/or trade dress at its expense including any modified or additional trade names, trademarks, service marks, logotypes, commercial symbols, and trade dress in accordance with the Manual(s) and Standards.
Except as Company may otherwise direct, Franchisee shall implement any change within 60 days after notice by Company at Franchisee's expense.
- 11.6 Acts in Derogation of the Marks.
Franchisee agrees that Company's trade dress and the Marks are the exclusive property of Company and/or its Affiliates and Franchisee now, and will hereafter, assert no claim to any goodwill, reputation or ownership thereof by virtue of Franchisee's licensed and/or franchised use thereof, or otherwise.
Franchisee further agrees that it is familiar with the standards and high quality of the use of the trade dress and Marks, and Franchisee agrees that it will maintain this standard in its use of the Marks and trade dress.
All use of the Marks and trade dress by Franchisee inures to the benefit of Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a franchisee may participate in the defense or settlement of a claim at their own expense. However, Angry Chickz retains the final decision-making authority regarding the disposition of any claim. This means that while franchisees can engage in the legal process to protect their interests, Angry Chickz has the ultimate say in how the claim is handled and resolved.
This provision allows franchisees to have some involvement in legal matters that may affect their business, but it also ensures that Angry Chickz maintains control over the overall legal strategy and outcome. This is a common arrangement in franchising, as it allows the franchisor to protect the brand's reputation and ensure consistent legal positions across all franchise locations.
It is important for prospective Angry Chickz franchisees to understand that while they can participate in the defense or settlement, their influence is limited. Franchisees should carefully consider the potential costs of participating in legal proceedings and weigh them against the limited control they will have over the final outcome. Franchisees should also be aware that they are required to sign documents and take reasonable actions to protect Angry Chickz's interests in any litigation.