If Angry Chickz elects to cure a default, is notice to the franchisee required?
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, Angry Chickz has the option to cure a franchisee's default without providing prior notice. Specifically, if a franchisee fails to meet their obligations or breaches any terms within the franchise agreement, Angry Chickz can choose to address the default immediately or at any point thereafter. This action does not constitute a waiver of their right to claim default or breach.
The cost incurred by Angry Chickz to cure the default becomes the responsibility of the franchisee. This cost is due on demand and is considered an addition to the compensation owed to Angry Chickz. At Angry Chickz's discretion, this amount will be added to the franchisee's next accruing compensation.
This clause in the franchise agreement allows Angry Chickz to protect its brand and maintain standards across all franchise locations. However, it also places a financial burden on the franchisee, who may be required to reimburse Angry Chickz for actions taken to correct operational or contractual issues. Franchisees should be aware of this provision and understand the potential financial implications of non-compliance with the franchise agreement.