What happens to the Angry Chickz franchisee's rights under the agreement upon termination?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
of Franchisee) of its obligations to any Co-Op Advertising Region of which it is a member, shall be deemed to be a default of each and every said agreement. Furthermore, in the event of termination, for any cause, of this Agreement or any other agreement between the parties hereto, Company may, at its option, terminate any or all said agreements.
ARTICLE 15 RIGHTS AND OBLIGATIONS UPON TERMINATION, EXPIRATION, NON-RENEWAL, ETC.
15.1 General. In the event of rescission of this Agreement, and/or upon the expiration or termination (including nonrenewal) of Franchisee's rights granted under this Agreement:
- 15.1.1 Franchisee shall immediately cease to use all Confidential Information, the Marks, and any confusingly similar trademark, service mark, trade name, logotype, or other commercial symbol or insignia. Franchisee shall immediately return the Manual(s), all training materials, records, customer lists, IS Data, files, advertising and promotional materials and all other written materials incorporating or containing Confidential Information. Franchisee shall at its own cost make cosmetic changes to the Franchised Business so that it no longer contains or resembles Company's proprietary designs and trade dress. Franchisee shall remove all materials that would identify the Franchised Business as a Restaurant and otherwise as a business operated under the Marks, System and Standards, and remove distinctive cosmetic features and finishes, lighting, FFE, décor, logos, signs, menus, decals, floor and wall coverings and colors, and exterior finishes and colors, as Company may direct. Franchisee shall, at Company's request, immediately grant Company access to the Franchised Business to make cosmetic changes to the Franchised Business so that it no longer resembles a Restaurant. Company is permitted to identify in the Manual(s) additional actions Franchisee must take following termination or expiration (including nonrenewal) to de-identify the Franchised Business, and Franchisee will timely perform all such additional actions.
- 15.1.2 Company may retain all fees paid pursuant to this Agreement, and Franchisee shall immediately pay any and all amounts owing to Company, its Affiliates, and/or Suppliers.
- 15.1.3 Any and all obligations of Company to Franchisee under this Agreement shall immediately cease and terminate.
15.1.4 Franchisee shall immediately cease and thereafter refrain from representing itself as then or formerly a franchisee or other affiliate of Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Article 15.1 outlines the rights and obligations of the franchisee upon termination, expiration, or non-renewal of the franchise agreement. The franchisee must immediately stop using all confidential information, trademarks (Marks), and any confusingly similar commercial symbols associated with Angry Chickz. They are also required to return all manuals, training materials, records, customer lists, data, files, advertising, and promotional materials containing confidential information.
Financially, Angry Chickz may retain all fees paid by the franchisee under the agreement, and the franchisee must immediately pay any outstanding amounts owed to Angry Chickz, its affiliates, or suppliers. All obligations of Angry Chickz to the franchisee immediately cease. The franchisee must also stop representing themselves as a current or former franchisee of Angry Chickz.
Furthermore, the franchisee is responsible for making cosmetic changes to the franchised business to ensure it no longer resembles an Angry Chickz restaurant, including removing distinctive features, finishes, lighting, furniture, décor, logos, signs, menus, decals, and colors. Angry Chickz can request access to the premises to make these changes at the franchisee's cost. The franchisor may also specify additional actions in the manuals to de-identify the business, which the franchisee must perform. According to section 15.2, the termination of the agreement does not relieve the franchisee of any debts, obligations, or liabilities to Angry Chickz existing at the time of termination.