What is the length of each renewal period for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
isions of the franchise and related agreements**. You should read these provisions in the agreements attached to this disclosure document.
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | § 3.1 | 10 years |
| franchise term | ||
| b. Renewal or | § 3.2 | 2 successive 5-year periods |
| extension of the | ||
| term | ||
| c. Requirements for franchisee to renew or extend | §§ 3.2 – 3.4 | We use the term "renewal" to refer to extending our franchise relationship at the end of your initial term (and any other renewal or extension of the initial term). You may be asked to sign a contract with materially different terms and conditions than your original contract. You must: (1) pay the successor agreement fee; (2) have complied with your obligations during the term of your Franchise Agreement; (3) have delivered a notice between 9 and 12 months before the expiration of the Term; (4) execute a new franchise agreement which may contain materially different terms and conditions from your original contract; (5) must have undertaken and completed at your expense the remodeling, renovation and refurbishment of your Angry Chickz Restaurant, unless you have remodeled your business within the preceding 5 years; (6) sign a general release; (7) not have committed three or more material defaults during prior 36 month period and (8) you or your employees, as applicable, must have complied with our then-current qualification, training and certification requirements, at your expense. |
| d. Termination by | Not applicable | Subject to state law. |
| franchisee | ||
| e. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the franchise agreement includes a provision for renewal or extension of the term. Specifically, the FDD states that there are two potential renewal periods, each lasting 5 years. This means that after the initial franchise term, a franchisee in good standing has the option to extend their agreement for up to two additional 5-year terms, potentially prolonging their business operation under the Angry Chickz brand for a significant period.
However, to exercise these renewal options, the franchisee must meet several requirements. These include paying a successor agreement fee, complying with all obligations during the initial term, providing advance notice of intent to renew, executing a new franchise agreement (which may have different terms), completing a restaurant remodel (unless one was recently done), signing a general release, avoiding repeated defaults, and ensuring that the franchisee and their employees meet current training and certification standards.
The fact that the new franchise agreement may contain materially different terms and conditions from the original contract is an important consideration. This is a fairly standard practice in franchising, as brands evolve and update their systems over time. Prospective franchisees should carefully review the renewal terms when the time comes to understand any changes to fees, operational requirements, or other obligations. Furthermore, the cost of remodeling, along with the successor agreement fee, should be factored into the franchisee's financial planning for the renewal period.