Does Angry Chickz have an obligation to advance the Developer's share of arbitration costs?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Company reserves the right, but has no obligation, to advance Developer's share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place and by doing so will not be deemed to have waived or relinquished our right to seek the recovery of those costs in accordance with this Section 11.1.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz does not have an obligation to advance the Developer's share of arbitration costs. However, Angry Chickz reserves the right, but has no obligation, to advance the Developer's share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place. If Angry Chickz chooses to advance these costs, it retains the right to seek recovery of those costs.
This means that as a prospective Angry Chickz developer, you should be prepared to cover your own arbitration costs. While there is a possibility that Angry Chickz may choose to advance these costs, it is not guaranteed, and they can seek reimbursement from you later.
This clause protects Angry Chickz while allowing them the flexibility to facilitate arbitration proceedings if they deem it necessary. It is important for potential developers to factor in potential arbitration costs when assessing the financial viability of the franchise.