What is the 'Notice of Election' in the context of an Angry Chickz Successor Agreement Right?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Form and Manner of Exercising Successor Agreement Right. If available, the Successor Agreement Right shall be exercised only in the following manner:
- 3.3.1 Between 9 months and 12 months before the expiration of the Term, Franchisee shall notify Company in writing ("Notice of Election") that it intends to exercise its Successor Agreement Right. No sooner than immediately after the expiration of any waiting period(s) required by Applicable Law, and no more than 30 days after Franchisee receives Company's franchise disclosure document (if applicable), Franchisee shall execute the copies of the Successor Franchise Agreement and return them to Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a 'Notice of Election' is a written notification a franchisee must provide to Angry Chickz if they intend to exercise their Successor Agreement Right. This notice must be delivered between 9 and 12 months before the expiration of the current franchise term. After any legally required waiting period and within 30 days of receiving Angry Chickz's franchise disclosure document (if applicable), the franchisee must then execute and return copies of the Successor Franchise Agreement to Angry Chickz.
The Successor Agreement Right allows a franchisee, under certain conditions, to enter into a new franchise agreement at the end of their current term. This new agreement will be on the form then being offered to new Angry Chickz franchisees and covers two successive five-year periods. The terms of this successor agreement, including fees and royalties, may differ significantly from the original agreement.
If a franchisee fails to provide the Notice of Election within the specified timeframe or fails to meet all the conditions outlined in Section 3.4 of the franchise agreement, their Successor Agreement Right will lapse. This means they will lose the opportunity to renew their franchise under a successor agreement. The conditions precedent to entering into a Successor Franchise Agreement include that Angry Chickz must be offering franchises in the state where the location is at the time of the Notice of Election, the franchisee must not be in default of their obligations, and the franchisee must comply with any remodeling or training requirements.
In the event that Angry Chickz is not offering new franchises or is revising its franchise documents when the Notice of Election is delivered, Angry Chickz has the option to offer a renewal of the existing agreement or extend the term on a week-to-week basis until a new franchise agreement can be lawfully offered. This ensures Angry Chickz maintains flexibility in managing its franchise agreements and compliance with legal requirements.