Is it the franchisee's responsibility to pay for the remodeling, renovation, and refurbishment of their Angry Chickz Restaurant for renewal?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
isions of the franchise and related agreements**. You should read these provisions in the agreements attached to this disclosure document.
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | § 3.1 | 10 years |
| franchise term | ||
| b. Renewal or | § 3.2 | 2 successive 5-year periods |
| extension of the | ||
| term | ||
| c. Requirements for franchisee to renew or extend | §§ 3.2 – 3.4 | We use the term "renewal" to refer to extending our franchise relationship at the end of your initial term (and any other renewal or extension of the initial term). You may be asked to sign a contract with materially different terms and conditions than your original contract. You must: (1) pay the successor agreement fee; (2) have complied with your obligations during the term of your Franchise Agreement; (3) have delivered a notice between 9 and 12 months before the expiration of the Term; (4) execute a new franchise agreement which may contain materially different terms and conditions from your original contract; (5) must have undertaken and completed at your expense the remodeling, renovation and refurbishment of your Angry Chickz Restaurant, unless you have remodeled your business within the preceding 5 years; (6) sign a general release; (7) not have committed three or more material defaults during prior 36 month period and (8) you or your employees, as applicable, must have complied with our then-current qualification, training and certification requirements, at your expense. |
| d. Termination by | Not applicable | Subject to state law. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees are generally responsible for the costs of remodeling, renovation, and refurbishment of their restaurant as a condition of renewing their franchise agreement. Specifically, to renew the franchise agreement for an additional term, the franchisee must have completed the remodeling, renovation, and refurbishment of their Angry Chickz Restaurant at their own expense. However, there is an exception: this requirement is waived if the franchisee has already remodeled the business within the 5 years immediately preceding the renewal.
This requirement is fairly standard in the franchise industry, as franchisors want to ensure that all locations maintain a consistent brand image and meet current standards. For a prospective Angry Chickz franchisee, this means they should anticipate a significant capital expenditure for remodeling at the time of renewal, unless they have recently updated their restaurant. It would be prudent to inquire about the typical cost of such a remodel and to factor that into their long-term financial projections.
It's important to note that the new franchise agreement may contain materially different terms and conditions from the original contract. In addition to the remodeling requirement, franchisees must also pay a successor agreement fee, comply with all obligations during the term of the Franchise Agreement, deliver a renewal notice within the specified timeframe, execute a new franchise agreement, sign a general release, avoid committing three or more material defaults in the prior 36 months, and ensure that they and their employees meet current training and certification requirements, all at their own expense. Failing to meet any of these conditions could prevent the franchisee from being able to renew their agreement.