Does Angry Chickz have a right of first refusal to purchase the assets of a franchise in Michigan?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise.
- Construction. In all other respects, the Area Development Agreement will be construed and enforced in accordance with its terms.
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the Effective Date identified below.
| "Company" | "Developer" |
|---|---|
| ANGRY CHICKZ FRANCHISING LLC, a California limited liability company | , [ ] an individual [ ] a general partnership; |
| By: | [ ] a limited partnership; [ ] a limited liability company; |
| Name: | [ ] a corporation; |
| Its: | By: |
| Date of signing: | Name: Its: Date of signing: |
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
- (d) A provision that permits a Franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration, of the franchisee's inventory, supplies, equipment, fixtures, and furnishings. Personalized materials which have no value to the Franchisor and inventory, supplies, equipment, fixtures, and furnishings not
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document addendum for Michigan, certain provisions that might be in the franchise documents are prohibited and cannot be enforced against the franchisee in Michigan. These include prohibitions on joining franchisee associations, requirements to waive rights under the act, termination without good cause, refusal to renew without fair compensation, and refusal to renew on terms generally available to other franchisees.
Specifically, the addendum addresses scenarios related to termination and renewal, ensuring franchisees are protected from unfair practices. For instance, Angry Chickz cannot terminate a franchise before its term expires without good cause, which includes failure to comply with the franchise agreement, provided the franchisee has a reasonable opportunity (up to 30 days) to correct the failure. Additionally, if Angry Chickz chooses not to renew a franchise with a term less than 5 years, they must fairly compensate the franchisee for the fair market value of inventory, supplies, equipment, fixtures, and furnishings, unless the franchisee can continue the same business under a different brand or receives at least 6 months' notice of non-renewal.
However, the FDD addendum for Michigan does not explicitly address whether Angry Chickz has a right of first refusal to purchase the assets of a franchise. While the document outlines conditions under which Angry Chickz must compensate a franchisee upon non-renewal, it does not state whether Angry Chickz has the first option to buy the franchise's assets. A prospective franchisee should clarify this point with Angry Chickz to fully understand the terms of the franchise agreement in Michigan.