What happens to covenants in the Angry Chickz agreement that require performance after the agreement's expiration or termination?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.5 Survival of Covenants.
The covenants contained in this Agreement which, by their nature or terms, require performance by the parties after the expiration or termination of this Agreement shall be enforceable notwithstanding said expiration or other termination of this Agreement for any reason whatsoever.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, any covenants within the franchise agreement that necessitate actions from either party even after the agreement concludes—whether through expiration or termination—will remain in effect and enforceable. This means that certain obligations outlined in the agreement do not simply vanish once the franchise term ends.
For a prospective Angry Chickz franchisee, this implies a need to carefully review all covenants within the franchise agreement to understand which responsibilities extend beyond the franchise term. These could include non-compete clauses, confidentiality agreements, or obligations related to the use of Angry Chickz's intellectual property. Understanding the duration and scope of these post-termination obligations is crucial for planning future business activities after the franchise agreement ends.
This survival of covenants is a fairly standard practice in franchising, designed to protect the franchisor's brand, trade secrets, and overall system integrity. Franchisees should seek legal counsel to fully understand the implications of these clauses and how they might affect their future business endeavors. It is important to note, however, that the enforceability of certain provisions, such as non-compete agreements, can vary by state law, as noted elsewhere in the FDD for California.