If Angry Chickz cures a franchisee's default, when is the cost due?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2 Company's Right To Cure Defaults. In addition to all other remedies, if Franchisee shall default in the performance of any of its obligations or breach any term or condition of this Agreement or any related agreement, Company may, at its election, immediately or at any time thereafter, without waiving any claim for default or breach and without notice to Franchisee, cure such default or breach for the account and on behalf of Franchisee, and the cost to Company shall be due and payable on demand and shall be deemed to be additional compensation due to Company and shall be added to the amount of compensation next accruing, at the election of Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, if the company elects to cure a franchisee's default, the cost to Angry Chickz is due and payable on demand. Additionally, Angry Chickz has the option to add the cost to the amount of compensation next accruing. This means that Angry Chickz can either require immediate payment for the costs incurred in curing the default or spread the payment out by adding it to the franchisee's next compensation payment.
This clause in the franchise agreement gives Angry Chickz flexibility in recovering costs associated with curing a franchisee's default. It also places the financial burden of the default squarely on the franchisee, as they are responsible for reimbursing Angry Chickz for all associated expenses.
For a prospective Angry Chickz franchisee, this highlights the importance of adhering to the franchise agreement and avoiding default. If a default occurs and Angry Chickz chooses to cure it, the franchisee will be responsible for covering those costs, potentially on short notice. Franchisees should ensure they have sufficient financial resources to cover such expenses if they arise.