What payments by the developer are related to the expiration of the term in the Angry Chickz Area Development Agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Effect of Expiration. Developer shall have no right to renew or extend the Term or have an option to enter into any successor area development agreement. Following the expiration of the Term, or the sooner termination of this Agreement, (a) Developer shall have no further right to construct, equip, own, open or operate additional Restaurants which are not, at the time of such termination or expiration, the subject of a then existing Franchise Agreement between Developer (or an Affiliate of Developer) and Company which is then in full force and effect, and (b) Company or its Affiliates may thereafter itself exercise all of its rights, including the right to construct, equip, open, own or operate, franchise, and license others to (or grant development rights to) construct, equip, open, own or operate Restaurants at any location(s) (within or outside of the Development Area), without any restriction, subject only to any territorial rights granted for any then-existing Restaurants pursuant to a validly subsisting Franchise Agreement executed for such Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Article 4.2 outlines the effects of the Area Development Agreement's expiration. Specifically, upon expiration of the term, the developer loses the right to construct, equip, own, open, or operate additional Angry Chickz restaurants, except for those already under an existing Franchise Agreement.
Furthermore, Angry Chickz gains the right to operate or franchise others to operate restaurants in any location, without restrictions, subject to any territorial rights granted for existing restaurants under a valid Franchise Agreement.
While Article 5 generally discusses payments by the developer, the provided excerpt does not specify any payments that are explicitly tied to the expiration of the Area Development Agreement. The document details the loss of development rights but does not mention any fees, penalties, or other payments due upon the agreement's expiration.