What is the minimum number of Angry Chickz Restaurants that the Developer and its Affiliates must operate in the Development Area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
of advertising and promotion;
- (d) to develop, acquire, merge with, or otherwise become associated with other concepts (including dual branding and/or franchise systems), whether or not using the System and/or the Marks, and award franchises and/or licenses under other concepts for locations anywhere; and
- (e) own, use, license, maintain, and otherwise deal with consumer, vendor, and sales information, including such customer, vendor and sales information from customers purchasing goods or services from Developer.
ARTICLE 2 DEVELOPER'S DEVELOPMENT OBLIGATION
2.1 Development Obligation.
- 2.1.1 Within each Development Period specified in Exhibit B, Developer shall construct, equip, open and thereafter continue to operate within the Development Area, not less than the cumulative number of Dine-In Restaurants required by the Development Obligation for that Development Period. Restaurants developed hereunder which are open and operating and which have been assigned to Affiliates of Developer in accordance with Section 7.2.2 with Company's consent, shall count in determining whether Developer has satisfied the Development Obligation for so long as the applicable Affiliate continues to satisfy the conditions set forth in Section 7.2.2.
- 2.1.2 If, during the Term, Developer ceases to operate any Restaurant developed and opened under this Agreement with Company's prior written consent and for no other reason, Developer must develop a replacement Restaurant (a "Replacement Restaurant") in the Development Area to fulfill Developer's obligation to have constructed, equipped, opened and thereafter operate the required number of Restaurant at the expiration of each Development Period. Developer may not, however, cease operating any Restaurant or obtain a Replacement Restaurant without Company's prior written consent. Developer must construct, equip, open and thereafter operate each Replacement Restaurant within 12 months after the date of the closing of the Restaurant that it will replace. During such 12-month period, the Replacement Restaurant shall be considered open and operated for purposes of determining Developer's compliance with the Development Obligation.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a developer and its affiliates must operate a minimum cumulative number of restaurants in the Development Area. Specifically, within each Development Period outlined in Exhibit B, the developer needs to construct, equip, open, and continuously operate at least the cumulative number of Dine-In Restaurants as mandated by the Development Obligation for that period. These restaurants, if assigned to Affiliates with the company's consent according to Section 7.2.2, will still count toward fulfilling the developer's obligation, provided the Affiliate adheres to the conditions in Section 7.2.2.
If a developer ceases to operate a restaurant that was developed and opened under the agreement, with the company's prior written consent, they are required to develop a Replacement Restaurant within the Development Area. This Replacement Restaurant ensures that the developer meets their obligation to maintain the required number of operating restaurants by the end of each Development Period. The developer has 12 months from the date of closing the original restaurant to construct, equip, open, and operate the Replacement Restaurant. During this 12-month period, the Replacement Restaurant is considered open and operating for compliance purposes.
Furthermore, prior to the company's acceptance of a proposed restaurant site and the execution of a Franchise Agreement, the developer and its affiliates must have fully performed all obligations under the Area Development Agreement, Franchise Agreements, and other written agreements with Angry Chickz. They must not be in default of any contractual or legal obligations to the company, its affiliates, approved vendors, suppliers, or any governmental agency. Additionally, the developer must demonstrate their financial and managerial capacity to fulfill the obligations of the new Franchise Agreement, including submitting a comprehensive management plan acceptable to Angry Chickz.