Does Angry Chickz have the right to terminate the franchise agreement if the franchisee defaults?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
rtant provisions of the Area Development Agreement. You should read these provisions in the agreement attached to this disclosure document.
| Provision | Section in Area Development Agreement | Summary | |
|---|---|---|---|
| a. Term of the license | §§ 1.1 and 4.1 | As stated in schedule or until you sign a Franchise Agreement for your last Restaurant necessary to satisfy your Development Obligation, whichever is earlier. | |
| b. Renewal or extension | Not applicable | ||
| of the term | |||
| d. Termination by you | Not Applicable | Subject to state law. | |
| e. Termination by Us | Not Applicable | ||
| without cause | |||
| f. Termination by Us with cause | § 9.1 | We can terminate if you or any of your affiliates materially default under the Area Development Agreement, an individual Franchise Agreement, or any other agreement with us or any of our affiliates. | |
| g. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz has the right to terminate the Area Development Agreement if the franchisee or any of their affiliates materially default under the Area Development Agreement, an individual Franchise Agreement, or any other agreement with Angry Chickz or any of its affiliates.
If a franchisee defaults, they have a limited time to correct the issue. Specifically, a franchisee has 5 days to cure non-payment of fees and 60 days to cure any other default. However, if the breach or default relates to obligations under any Franchise Agreement or other agreement, the notice and cure provisions of that specific agreement will take precedence.
Certain defaults cannot be cured, leading to immediate termination. These non-curable defaults include unapproved transfers, failure to meet development obligations, any breach of unfair competition provisions, and failure to meet Financial Covenants. This means that franchisees must adhere strictly to the terms of their agreements to avoid immediate termination for these specific violations.