What makes the repurchase of an Angry Chickz franchise lawful in Washington?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
- (d) A provision that permits a Franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration, of the franchisee's inventory, supplies, equipment, fixtures, and furnishings.
Personalized materials which have no value to the Franchisor and inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation.
This subsection applies only if: (i) the term of the franchise is less than 5 years; and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising, or other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not receive at least 6 months advance notice of Franchisor's intent not to renew the franchise.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Michigan Addendum outlines specific conditions under which the franchisor's refusal to renew a franchise necessitates fair compensation to the franchisee, making such a repurchase lawful. This addendum states that if Angry Chickz refuses to renew a franchise, they must fairly compensate the franchisee through repurchase or other means for the fair market value of the franchisee's inventory, supplies, equipment, fixtures, and furnishings at the time of expiration.
However, this compensation requirement has limitations. Angry Chickz is not obligated to compensate for personalized materials that hold no value for them, or for inventory, supplies, equipment, fixtures, and furnishings not reasonably required for the franchise business.
Furthermore, these conditions apply specifically if (1) the franchise term is less than five years, and (2) the franchisee is either prohibited from operating a similar business under a different brand in the same area after the franchise expires, or the franchisee does not receive at least six months' advance notice that Angry Chickz intends not to renew the franchise. These stipulations ensure that franchisees are protected from unfair non-renewal scenarios, particularly when their ability to continue in a similar business is restricted or when they lack sufficient notice to prepare for the non-renewal.