Is Angry Chickz liable for lost income to the franchisee as a result of required remodeling?

According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz will not be liable to the franchisee for any lost income, profits, opportunities, or other losses resulting from required remodeling. This means that if Angry Chickz requires a franchisee to remodel their location, the franchisee is responsible for any financial losses incurred during the remodeling process.

Angry Chickz may require franchisees to remodel their locations, potentially including structural changes, replacements, or modifications to furniture, fixtures, equipment, décor, and trade dress. The franchisee must complete the remodeling work expeditiously. If the investment is less than $75,000, the franchisee has 90 days to complete the work. If the investment is more than $75,000, the franchisee has 6 months to complete the work.

This clause is significant for prospective franchisees as it highlights a potential financial risk. Franchisees should factor in the possibility of remodeling costs and potential lost income when evaluating the financial viability of the franchise. It is common in the franchise industry for franchisors to require periodic updates and remodels to maintain brand standards, but the financial burden typically falls on the franchisee. Franchisees should inquire about the frequency and estimated costs of required remodels to better prepare for these expenses.