What happens to the Angry Chickz Area Development Agreement at the end of its term?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 4 TERM OF AREA DEVELOPMENT AGREEMENT
- 4.1 Term. The term of this Agreement shall commence on the Effective Date and, unless otherwise negotiated, terminated, or extended as provided herein, shall continue until the Expiration Date (the "Term"). At the end of the Term, this Agreement shall be deemed expired.
- 4.2 Effect of Expiration. Developer shall have no right to renew or extend the Term or have an option to enter into any successor area development agreement. Following the expiration of the Term, or the sooner termination of this Agreement, (a) Developer shall have no further right to construct, equip, own, open or operate additional Restaurants which are not, at the time of such termination or expiration, the subject of a then existing Franchise Agreement between Developer (or an Affiliate of Developer) and Company which is then in full force and effect, and (b) Company or its Affiliates may thereafter itself exercise all of its rights, including the right to construct, equip, open, own or operate, franchise, and license others to (or grant development rights to) construct, equip, open, own or operate Restaurants at any location(s) (within or outside of the Development Area), without any restriction, subject only to any territorial rights granted for any then-existing Restaurants pursuant to a validly subsisting Franchise Agreement executed for such Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Area Development Agreement concludes at the end of its term. Specifically, the agreement will be deemed expired on the Expiration Date. The term begins on the Effective Date and continues until the Expiration Date, unless otherwise negotiated, terminated, or extended.
Upon expiration, the developer loses any right to renew or extend the term, and they do not have an option to enter into any successor area development agreement. The developer also forfeits the right to construct, equip, own, open, or operate additional Angry Chickz restaurants that are not already subject to a then-existing Franchise Agreement between the developer (or an affiliate) and Angry Chickz, which is in full force and effect at the time of expiration or termination.
Following the expiration of the Area Development Agreement, Angry Chickz or its affiliates have the right to exercise all of its rights without restriction. This includes the right to construct, equip, open, own, operate, franchise, and license others to construct, equip, open, own, or operate restaurants at any location, whether within or outside the Development Area. This is subject only to any territorial rights granted for then-existing restaurants under a valid Franchise Agreement executed for such restaurant.