After termination of an Angry Chickz franchise, who bears the cost of cosmetic changes to the Franchised Business?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1.1 Franchisee shall immediately cease to use all Confidential Information, the Marks, and any confusingly similar trademark, service mark, trade name, logotype, or other commercial symbol or insignia. Franchisee shall immediately return the Manual(s), all training materials, records, customer lists, IS Data, files, advertising and promotional materials and all other written materials incorporating or containing Confidential Information. Franchisee shall at its own cost make cosmetic changes to the Franchised Business so that it no longer contains or resembles Company's proprietary designs and trade dress. Franchisee shall remove all materials that would identify the Franchised Business as a Restaurant and otherwise as a business operated under the Marks, System and Standards, and remove distinctive cosmetic features and finishes, lighting, FFE, décor, logos, signs, menus, decals, floor and wall coverings and colors, and exterior finishes and colors, as Company may direct. Franchisee shall, at Company's request, immediately grant Company access to the Franchised Business to make cosmetic changes to the Franchised Business so that it no longer resembles a Restaurant. Company is permitted to identify in the Manual(s) additional actions Franchisee must take following termination or expiration (including nonrenewal) to de-identify the Franchised Business, and Franchisee will timely perform all such additional actions.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, in the event of termination, expiration, or non-renewal of the franchise agreement, the franchisee is responsible for the costs associated with making cosmetic changes to the Franchised Business. This includes altering the business so that it no longer resembles Angry Chickz's proprietary designs and trade dress.
The franchisee must remove all materials that identify the business as an Angry Chickz restaurant and remove distinctive cosmetic features, finishes, lighting, furniture, fixtures, and equipment (FFE), décor, logos, signs, menus, decals, floor and wall coverings, and exterior finishes and colors, as directed by Angry Chickz. Angry Chickz is also permitted to access the Franchised Business to make these cosmetic changes themselves.
This requirement ensures that the terminated franchise is clearly differentiated from the Angry Chickz brand, preventing any potential confusion among customers. The franchisee bears the financial burden of these changes, which can include significant expenses depending on the extent of the required modifications. It is important for prospective franchisees to consider these potential costs when evaluating the franchise opportunity, as they will need to budget for these expenses should the franchise agreement end.