Where must Angry Chickz franchisees and guarantors file any claim relating to the release agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Guarantors shall file any controversy or claim whatsoever arising out of or relating to this Release or the enforcement of the promises in this Release or with regard to the interpretation, formation, or breach of this Release in the court where ANGRY CHICKZ's principal offices are located.
ANGRY CHICKZ may file any controversy or claim whatsoever arising out of or relating to this Release or the enforcement of the promises in this Release or with regard to the interpretation, formation, or breach of this Release in the court where its principal offices are located, where Franchisee resides or does business, or where the claim arose.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees and their guarantors are required to file any legal claims related to the release agreement in a specific court. The FDD states that any controversy or claim arising from the release, its enforcement, interpretation, formation, or breach must be filed in the court located where Angry Chickz's principal offices are situated.
This clause dictates the venue for legal disputes, meaning that franchisees may need to litigate in a location that is not their home jurisdiction. This could potentially increase the cost and complexity of resolving disputes, as franchisees and guarantors may need to hire legal counsel familiar with the laws and procedures of the state where Angry Chickz's principal offices are located.
Conversely, Angry Chickz has more flexibility in choosing the venue for claims it brings against franchisees or guarantors. Angry Chickz can file claims in the court where its principal offices are located, where the franchisee resides or conducts business, or where the claim originated. This provides Angry Chickz with strategic options in pursuing legal action, potentially allowing them to select a venue that is most advantageous to their case. Franchisees should consider this when evaluating the potential costs and risks associated with signing the release agreement.