What sections of the Angry Chickz Franchise Agreement outline the requirements for a franchisee to renew or extend?
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 Angry Chickz's 2025 Franchise Disclosure Document, the requirements for a franchisee to renew or extend their franchise agreement are detailed in Sections 3.2 through 3.4 of the Franchise Agreement. The initial franchise term is 10 years, with an option for two successive 5-year renewal periods.
To renew the franchise, Angry Chickz requires franchisees to meet several conditions. First, franchisees must pay a successor agreement fee, the amount of which is not specified in this document. Second, they must have complied with all obligations under the existing Franchise Agreement. Third, franchisees must provide notice of their intent to renew between 9 and 12 months before the expiration of the current term.
Additionally, franchisees must execute a new franchise agreement, which Angry Chickz notes may contain terms and conditions that are materially different from the original agreement. Franchisees must also complete a remodeling, renovation, and refurbishment of their Angry Chickz Restaurant at their own expense, unless they have already remodeled within the preceding 5 years. They must sign a general release and must not have committed three or more material defaults during the 36-month period before renewal. Finally, the franchisee and their employees must meet Angry Chickz's then-current qualification, training, and certification requirements, again at the franchisee's expense.