factual

Which provisions of the Angry Chickz franchise agreement survive the termination or expiration of the agreement?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 18.4 Survival of Obligations. Termination or expiration (including nonrenewal) shall be without prejudice to any other rights or remedies that Company or Franchisee, shall have in law or in equity. In no event shall a termination or expiration (including nonrenewal) of this Agreement affect Franchisee's obligations to take or abstain from taking any action in accordance with this Agreement. The provisions of this Agreement which by their nature or expressly constitute post-termination (or post-expiration or post-nonrenewal) covenants and agreements shall survive the termination or expiration (including nonrenewal) of this Agreement.
  • 15.1 General. In the event of rescission of this Agreement, and/or upon the expiration or termination (including nonrenewal) of Franchisee's rights granted under this Agreement:
    • 15.1.1 Franchisee shall immediately cease to use all Confidential Information, the Marks, and any confusingly similar trademark, service mark, trade name, logotype, or other commercial symbol or insignia. Franchisee shall immediately return the Manual(s), all training materials, records, customer lists, IS Data, files, advertising and promotional materials and all other written materials incorporating or containing Confidential Information. Franchisee shall at its own cost make cosmetic changes to the Franchised Business so that it no longer contains or resembles Company's proprietary designs and trade dress. Franchisee shall remove all materials that would identify the Franchised Business as a Restaurant and otherwise as a business operated under the Marks, System and Standards, and remove distinctive cosmetic features and finishes, lighting, FFE, décor, logos, signs, menus, decals, floor and wall coverings and colors, and exterior finishes and colors, as Company may direct. Franchisee shall, at Company's request, immediately grant Company access to the Franchised Business to make cosmetic changes to the Franchised Business so that it no longer resembles a Restaurant. Company is permitted to identify in the Manual(s) additional actions Franchisee must take following termination or expiration (including nonrenewal) to de-identify the Franchised Business, and Franchisee will timely perform all such additional actions.
  • 15.2 Termination Without Prejudice. The expiration or termination (including nonrenewal) of this Agreement shall be without prejudice to the rights of Company against Franchisee and such expiration or termination (including nonrenewal) shall not relieve Franchisee of any of its debts, obligations or liabilities, to Company existing at the time of expiration or termination (including nonrenewal) or terminate those obligations of Franchisee which, by their nature, survive the expiration or termination (including nonrenewal) of this Agreement, including without limitation, any such debt, obligation or liability which was the cause of termination or arose out of such cause.

15.3 Company's Purchase Option Following Termination or Expiration.

15.3.1 Following termination or expiration of this Agreement other than due to Company's uncured breach, Company (or Company's assignee, if applicable) shall have the option, exercisable by delivering written notice to Franchisee within sixty (60) calendar days from the date of the termination or expiration, to acquire from Franchisee, any or all of the Franchised Business's Assets (including equipment, fixtures, inventory, products, materials, and supplies) as selected by Company;

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to the 2025 Angry Chickz Franchise Disclosure Document, several obligations remain in effect even after the franchise agreement terminates or expires. Specifically, any debts, obligations, or liabilities owed to Angry Chickz by the franchisee at the time of termination remain in effect. Additionally, any promises or agreements made by the franchisee that benefit Angry Chickz's affiliates and designees can still be enforced by those parties.

Upon termination or expiration, the franchisee must immediately stop using all confidential information, trademarks, and similar identifying marks associated with Angry Chickz. The franchisee is also required to return all manuals, training materials, customer lists, and other written materials containing confidential information. Furthermore, the franchisee must make cosmetic changes to the business location to ensure it no longer resembles an Angry Chickz restaurant, including removing logos, signs, menus, and specific design elements.

Angry Chickz also has the option to purchase some or all of the franchisee's business assets, including equipment, fixtures, inventory, and supplies, within 60 days of termination or expiration. The franchisee must provide representations and warranties about the ownership and condition of these assets. These measures protect Angry Chickz's brand and system, and ensure a smooth transition after a franchise agreement ends.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.