If legislation or regulation determines that Angry Chickz and its franchisees are joint employers, who bears the associated costs?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
4.8.2 Should it ever be determined by legislation, regulation or other means, that Company's (or any of its Affiliates) and Company's franchisees
are joint employers or that Franchisee (or any of its employees or contractors) is an employee of Company (or any of its Affiliates), all costs associated with that change in relationship, including wages, taxes, insurance and other costs, without limitation, will be borne by Franchisee initially and on an ongoing basis. Should it ever be determined that any supply chain or any other contractual included revenue to Company or its Affiliates is modified or disallowed by legislation, regulation or other means, the parties agree that Company, in its sole and exclusive determination may increase royalty rates and other means to compensate for that lost revenue.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchisee bears the costs if Angry Chickz and its franchisees are determined to be joint employers. This includes all costs associated with the change in relationship.
Specifically, the franchisee is responsible for wages, taxes, insurance, and other related costs, without any limitations. This responsibility falls on the franchisee initially and continues on an ongoing basis.
Furthermore, if any supply chain or contractual revenue to Angry Chickz or its affiliates is modified or disallowed by legislation, regulation, or other means, Angry Chickz has the right to increase royalty rates and implement other measures to compensate for the lost revenue. This clause ensures that Angry Chickz can adjust financial terms to maintain its revenue streams in response to regulatory changes affecting the business model.