If no address was inserted in Section 1.1.2, what is the Angry Chickz franchisee required to do?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1.2 If an address has not been inserted in the space provided in Section 1.1.2, then promptly following the Effective Date, Franchisee shall promptly locate one or more proposed sites for Dine-In Restaurant Venues in the Search Area that meet the Standards. Franchisee agrees that it will only propose sites for a Restaurant within the Search Area and Company has no obligation to accept or review any location outside of the Search Area. Unless this Agreement was signed pursuant to an Area Development Agreement, until such time as Company has accepted a location as the Location under the Agreement, Franchisee has no territorial protection and Company may open or operate a Restaurant, and Company may license others to do so, at any location or locations within the Search Area.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, if the franchisee does not include a restaurant address in Section 1.1.2 of the franchise agreement, the franchisee must promptly find one or more proposed sites for a Dine-In Restaurant Venues in the Search Area that meet the Standards following the Effective Date. The franchisee is restricted to proposing sites within the designated Search Area, and Angry Chickz is not obligated to consider locations outside of this area.
Until Angry Chickz approves a location, the franchisee lacks territorial protection, meaning Angry Chickz can operate or license others to operate restaurants within the Search Area. This highlights the importance of quickly identifying and securing an approved location to gain territorial protection.
This clause is significant for potential Angry Chickz franchisees as it emphasizes the need for a swift and strategic approach to site selection. Franchisees should be prepared to dedicate time and resources to finding suitable locations that meet Angry Chickz's standards to avoid delays and potential competition from other franchisees or the franchisor itself within the same area.