What happens if an Angry Chickz Developer fails to fully comply with the requirements of Article 8?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
9.1.2 The term "Default", as used herein, includes the following:
- (e) Failure of Developer to fully comply with the requirements of Article 8.
The parties hereby expressly agree that if the scope or enforceability of Article 8 (or any section thereof) is disputed at any time by Developer, a court or arbitrator, as the case may be, may modify either or both of such provisions to the extent that it deems necessary to make such provision(s) enforceable under Applicable Law.
In addition, Company reserves the right to reduce the scope of either, or both, of said provisions without Developer's consent, at any time or times, effective immediately upon notice to Developer.
In view of the importance of the Marks and the Confidential Information and the incalculable and irreparable harm that would result to the parties in the event of a default of the covenants and agreements set forth in this Agreement, the parties agree that each party shall have the right to obtain specific performance, temporary restraining orders and temporary or preliminary injunctive relief from a proper court in the place where Developer has its principal office court of competent jurisdiction to enforce the covenants and agreements in this Article 8, in addition to any other relief to which such party may be entitled at law or in equity.
Each party submits to the jurisdiction of the court in the place where the Developer has its principal office for these purposes.
Developer agrees that Company may have temporary or preliminary injunctive relief without bond, but upon due notice, and Developer's sole remedy in the event of the entry of such injunctive relief will be the dissolution of the injunctive relief, if warranted, upon hearing duly had (all claims for damages by reason of the wrongful issuance of any injunction being expressly waived).
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, failure of a Developer to fully comply with the requirements of Article 8 constitutes a default of the agreement.
Article 8 likely contains important obligations for the Developer, and non-compliance can trigger consequences. The FDD does not specify what Article 8 covers, but it does state that if the scope or enforceability of Article 8 is disputed, a court or arbitrator may modify the provisions to make them enforceable under applicable law. Angry Chickz also reserves the right to reduce the scope of the provisions without the Developer's consent, effective immediately upon notice.
Given the importance of the marks and confidential information, Angry Chickz can seek specific performance, temporary restraining orders, and injunctive relief from a court to enforce Article 8. The Developer consents to the jurisdiction of the court where their principal office is located for these enforcement actions. The Developer also agrees that Angry Chickz may obtain temporary or preliminary injunctive relief without bond, provided due notice is given. The Developer's sole remedy in the event of such injunctive relief is to seek its dissolution, and they expressly waive any claims for damages resulting from a wrongful injunction.
Prospective Angry Chickz developers should carefully review the full Development Agreement and seek legal counsel to fully understand the obligations and potential ramifications of Article 8.