What are the obligations of an Angry Chickz franchisee regarding site selection and acquisition/lease, as detailed in Item 9, and how do these obligations relate to the franchisor's site review process in Item 11?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section In Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and acquisition/lease | Sections 5.1 and 5.2 of Franchise Agreement; Sections 6.1 and 6.2 of Area Development Agreement | Items 8 & 11 |
ITEM 11
FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Obligations
Before you open your business, we will:
Site Review. Upon receiving the information regarding a proposed site, we will review the information and either accept or reject the proposed site under our then-current standards for site acceptance and rejection. If we do not accept your proposed site within 30 days after your submission (or 15 days after you provide any supplemental information we request), the site will be deemed rejected. (Franchise Agreement, § 5.1) You may not enter into a lease or purchase agreement for a site unless and until the site has been accepted. We may impose a fee of $500 per each Site Review Kit if we reasonably determine that you have submitted more than 3 Site Review Kits.
Your Restaurant location will be purchased or leased by you from independent third parties. We do not generally own the premises and lease it to you.
Site Selection Assistance. We do not locate sites for you. However, we may, without obligation, assist you in locating or evaluating a site. Factors that we consider in determining the size of your Protected Area include among others, the demographics, population size, neighboring and adjacent retail tenants, visibility, and proximity to other businesses and our then-current standards for sites and territories will apply. (Franchise Agreement, § 5.1)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Item 9 outlines a franchisee's obligations, including site selection and acquisition/lease, which are further detailed in Sections 5.1 and 5.2 of the Franchise Agreement and Sections 6.1 and 6.2 of the Area Development Agreement. These obligations are also cross-referenced in Items 8 and 11 of the FDD, indicating their importance in the franchise operation. Item 11 specifies that Angry Chickz will review the information regarding a proposed site and either accept or reject it based on their current standards.
A prospective Angry Chickz franchisee is responsible for choosing a location for their restaurant, but this choice is subject to approval by Angry Chickz. The FDD states that a site will be deemed rejected if Angry Chickz does not accept it within 30 days of submission (or 15 days after supplemental information is provided). The franchisee cannot enter into any lease or purchase agreement until Angry Chickz approves the site. Furthermore, Angry Chickz may charge a fee of $500 for each Site Review Kit if the franchisee submits more than three.
While Angry Chickz does not locate sites for franchisees, they may offer assistance in evaluating potential locations. Factors considered during site evaluation include demographics, population size, neighboring retail tenants, visibility, and proximity to other businesses. This process ensures that the location aligns with Angry Chickz's standards for sites and territories, which are crucial for the success and consistency of the brand.
In summary, an Angry Chickz franchisee bears the primary responsibility for site selection and acquisition/lease, but Angry Chickz retains the right to review and approve the proposed site. This process involves submitting a Site Review Kit and adhering to Angry Chickz's standards, with potential fees for excessive submissions. The franchisor's approval is mandatory before any lease or purchase agreement can be finalized, highlighting the collaborative nature of site selection in the Angry Chickz franchise system.