In Michigan, can Angry Chickz require arbitration or litigation to be conducted outside of the state?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise.
- Construction. In all other respects, the Area Development Agreement will be construed and enforced in accordance with its terms.
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the Effective Date identified below.
| "Company" | "Developer" |
|---|---|
| ANGRY CHICKZ FRANCHISING LLC, a California limited liability company | , [ ] an individual [ ] a general partnership; |
| By: | [ ] a limited partnership; [ ] a limited liability company; |
| Name: | [ ] a corporation; |
| Its: | By: |
| Date of signing: | Name: Its: Date of signing: |
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:
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
- (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
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the addendum for Michigan states that the State of Michigan prohibits certain unfair provisions that are sometimes in franchise documents. If any of the provisions are in the franchise documents, the provisions are void and cannot be enforced against the franchisee.
However, the FDD does not specifically address whether Angry Chickz can require arbitration or litigation to be conducted outside of Michigan. The addendum lists several prohibited provisions, such as restrictions on joining franchisee associations, waivers of franchisee rights, termination without good cause, and refusal to renew franchises without fair compensation. These provisions are explicitly unenforceable in Michigan.
Because the document does not state whether Angry Chickz can require arbitration or litigation to be conducted outside of Michigan, a prospective franchisee should seek clarification from Angry Chickz or legal counsel to understand the specific terms and conditions of the franchise agreement regarding dispute resolution and venue.