What section of the Angry Chickz Franchise Agreement discusses renewal or extension of the term?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | § 3.1 | 10 years |
| franchise term | ||
| b. Renewal or | § 3.2 | 2 successive 5-year periods |
| extension of the | ||
| term | ||
| c. Requirements for franchisee to renew or extend | §§ 3.2 – 3.4 | We use the term "renewal" to refer to extending our franchise relationship at the end of your initial term (and any other renewal or extension of the initial term). You may be asked to sign a contract with materially different terms and conditions than your original contract. You must: (1) pay the successor agreement fee; (2) have complied with your obligations during the term of your Franchise Agreement; (3) have delivered a notice between 9 and 12 months before the expiration of the Term; (4) execute a new franchise agreement which may contain materially different terms and conditions from your original contract; (5) must have undertaken and completed at your expense the remodeling, renovation and refurbishment of your Angry Chickz Restaurant, unless you have remodeled your business within the preceding 5 years; (6) sign a general release; (7) not have committed three or more material defaults during prior 36 month period and (8) you or your employees, as applicable, must have complied with our then-current qualification, training and certification requirements, at your expense. |
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, Section 3.2 of the Franchise Agreement outlines the renewal or extension of the franchise term. Specifically, it states that Angry Chickz offers franchisees the option to renew for two successive 5-year periods.
However, franchisees should be aware of the requirements for renewal, as detailed in Sections 3.2 through 3.4 of the Franchise Agreement. These requirements include paying a successor agreement fee, fulfilling all obligations during the initial term, providing notice between 9 and 12 months before the term's expiration, and executing a new franchise agreement. This new agreement may contain terms and conditions that differ significantly from the original contract.
Additionally, franchisees must have completed any required remodeling, renovation, or refurbishment of their Angry Chickz restaurant within the 5 years preceding the renewal, sign a general release, avoid committing three or more material defaults within the 36 months before renewal, and ensure that they and their employees meet the then-current qualification, training, and certification requirements. These stipulations are typical in franchising, as they allow the franchisor to maintain brand standards and ensure the continued competence of its franchisees.