Can Angry Chickz require franchisees to license or sublicense Proprietary Systems?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3.3 If Company shall designate certain computer software or hardware which is owned or licensed by Company ("Proprietary Systems"), Franchisee shall at Company's request license or sublicense such hardware or software from Company or its designee and enter into a (sub)license agreement on Company's or such designee's then-current form. From time to time, Franchisee shall purchase any upgrades, enhancements or replacements to the Proprietary Systems. Company and its Affiliates may charge Franchisee up-front and ongoing fees for any Proprietary Systems that Company or its Affiliates license to Franchisee. Company may provide to Franchisee, for a fee, such support services relating to the Proprietary Software as Company deems advisable.
- 7.3.4 Company may modify the Standards relating to the Information Systems and Proprietary Systems which may require Franchisee, at Franchisee's sole cost and expense, to add, update, upgrade or replace the Information Systems, including hardware and/or software. Franchisee must
incorporate any required modifications or additions within a reasonable period days after receiving written notice from Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz can require franchisees to license or sublicense hardware or software that the company owns or licenses, which are referred to as "Proprietary Systems." At Angry Chickz's request, franchisees must enter into a license or sublicense agreement with Angry Chickz or its designee, using their current form.
Angry Chickz franchisees are also expected to purchase any upgrades, enhancements, or replacements to these Proprietary Systems as needed. Angry Chickz and its affiliates have the right to charge franchisees both up-front and ongoing fees for licensing these Proprietary Systems. Additionally, Angry Chickz may offer support services related to the software for a fee, if they deem it advisable.
Furthermore, Angry Chickz retains the right to modify the standards related to both Information Systems and Proprietary Systems. These modifications may require franchisees to add, update, upgrade, or replace their existing Information Systems, including both hardware and software, at their own expense. Franchisees are obligated to incorporate these changes within a reasonable timeframe after receiving written notice from Angry Chickz.