factual

How many successive renewal periods are available for an Angry Chickz franchise?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD 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.

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, franchisees have the option to renew their franchise agreement for two successive terms, each lasting five years. This means that after the initial 10-year franchise term, a franchisee in good standing can extend their agreement for an additional 10 years through these renewals.

However, to exercise the renewal option, franchisees must meet several requirements. These include paying a successor agreement fee, complying with all obligations under the existing Franchise Agreement, providing notice of intent to renew between 9 and 12 months before the current term expires, and executing a new franchise agreement. This new agreement may contain terms and conditions that differ significantly from the original contract, so franchisees should carefully review it with legal counsel.

Additionally, franchisees must have completed any required remodeling, renovation, or refurbishment of their Angry Chickz restaurant within the five years preceding the renewal, sign a general release, and not have committed three or more material defaults during the 36-month period before renewal. Franchisees and their employees must also meet Angry Chickz's then-current qualification, training, and certification requirements, at their own expense. Meeting these conditions is crucial for securing the additional 10 years of operating under the Angry Chickz brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.