If leasing a location for an Angry Chickz franchise, what term length is required for the lease?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
obligations on behalf of Company, or grant to lessor any rights against Company, nor agree to any other term, condition, or covenant which is inconsistent with any provision of this Agreement; (iv) the lease for the Location shall be for a term (including options) which is not less than the Term (and the Successor Term), unless Company approves a shorter term of the lease in writing
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if a franchisee leases a location, the lease term (including any options to renew) must be at least as long as the franchise agreement's term and any successor term, unless Angry Chickz approves a shorter lease term in writing. The initial term of the franchise agreement is 10 years from the opening date. Franchisees have the right to enter into a new franchise agreement for two successive five-year periods at the end of the initial term. Therefore, the lease should cover the initial 10-year term plus the potential for two additional 5-year successor terms, totaling 20 years, unless Angry Chickz provides written consent for a shorter period.
This requirement ensures that Angry Chickz franchisees have control of their location for the entire duration of their franchise agreement, including any potential renewal periods. This protects the franchisee's investment and ensures they can continue operating their business without the risk of losing their location. It also allows Angry Chickz to maintain consistent brand standards and operational control over the franchise location.
However, if the franchisee owns the location, Angry Chickz has the option to lease the location from the franchisee. In this case, Angry Chickz can select a lease term of up to 5 years, with two successive 5-year renewal options at fair market rental rates for both the initial and renewal terms. This clause only applies if the franchisee owns the location and Angry Chickz chooses to lease it from them, not when the franchisee is leasing from a third party.
Prospective Angry Chickz franchisees should carefully review the lease terms to ensure they align with the franchise agreement's requirements and consult with legal counsel to understand their obligations and rights under both agreements. It is also important to obtain written approval from Angry Chickz if a shorter lease term is desired to avoid any potential conflicts or breaches of the franchise agreement.