What must an Angry Chickz franchisee do with the Proprietary Systems upon termination?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3.3 If Company shall designate certain computer software or hardware which is owned or licensed by Company ("Proprietary Systems"), Franchisee shall at Company's request license or sublicense such hardware or software from Company or its designee and enter into a (sub)license agreement on Company's or such designee's then-current form. From time to time, Franchisee shall purchase any upgrades, enhancements or replacements to the Proprietary Systems. Company and its Affiliates may charge Franchisee up-front and ongoing fees for any Proprietary Systems that Company or its Affiliates license to Franchisee. Company may provide to Franchisee, for a fee, such support services relating to the Proprietary Software as Company deems advisable.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if Angry Chickz designates certain computer software or hardware as "Proprietary Systems," the franchisee may be required to license or sublicense such hardware or software from Angry Chickz or its designee. This arrangement would involve entering into a (sub)license agreement on Angry Chickz's or its designee's current form.
Furthermore, the franchisee is obligated to purchase any upgrades, enhancements, or replacements to these Proprietary Systems as needed. Angry Chickz and its affiliates may charge up-front and ongoing fees for the use of these licensed Proprietary Systems. Additionally, Angry Chickz may provide support services related to the Proprietary Software for a fee, if deemed advisable by Angry Chickz.
It is important to note that the FDD excerpt does not explicitly state what the franchisee must do with the Proprietary Systems upon termination of the franchise agreement. The excerpt focuses on the franchisee's responsibilities regarding the Proprietary Systems during the term of the agreement, including licensing, upgrades, and associated fees. A prospective franchisee should seek clarification from Angry Chickz regarding the specific procedures for handling the Proprietary Systems upon termination or expiration of the franchise agreement.