Will the terms of the Successor Franchise Agreement for Angry Chickz be the same as the original?

nd shall expire on tenth (10th) anniversary of the Opening Date(the "Expiration Date"), unless sooner terminated or extended in accordance with this Agreement.

3.2 Right to Enter into Successor Franchise Agreement.

• 3.2.1 Subject to the conditions contained in Section 3.4 and Franchisee's compliance with Section 3.3, at the expiration of the Term hereof, Franchisee shall have the right (the "Successor Agreement Right") to enter into a new franchise agreement on the then-current form generally being offered to prospective franchisees of Company operating under the Marks (the "Successor Franchise Agreement") for two (2) successive five (5) year periods (each a "Successor Term"). Franchisee acknowledges that the terms of the Successor Franchise Agreement, including fees and royalties, will be substantially similar to new franchise agreements granted at the time and may materially differ from those contained in this Agreement.

• 3.2.2 The term of the Successor Franchise Agreement shall commence upon the date of expiration of the Term, or Successor Term, as applicable; provided, however, that notwithstanding the terms of Company's thencurrent form of franchise agreement:

• (a) The first Successor Franchise Agreement shall provide that Franchisee must pay, in lieu of an initial fee, a renewal fee in an amount equal to 25% of the then-current initial franchise fee charged by Company in the state where the Franchised Business is located, but not less than $12,500; and

• (b) the first Successor Franchise Agreement shall provide the right to enter into a successor franchise agreement as provided in the first Successor Franchise Agreement for one additional five (5) year term and that no further rights shall be granted to renew or enter into further successor franchise agreements.

• 3.3 Form and Manner of Exercising Successor Agreement Right. If available, the Successor Agreement Right shall be exercised only in the following manner:

  • 3.3.1 Between 9 months and 12 months before the expiration of the Term, Franchisee shall notify Company in writing ("Notice of Election") that it intends to exercise its Successor Agreement Right. No sooner than immediately after the expiration of any waiting period(s) required by Applicable Law, and no more than 30 days after Franchisee receives Company's franchise disclosure document (if applicable), Franchisee shall execute the copies of the Successor Franchise Agreement and return them to Company.
  • 3.3.2 If Franchisee exercises its Successor Agreement Right in accordance with Section 3.3.1 and satisfies all of the conditions contained in

• Section 3.4, Company shall execute the Successor Franchise Agreements and promptly deliver one fully executed copy to Franchisee.

• 3.3.3 If Franchisee fails timely to perform any of the acts, or timely to deliver any of the notices required pursuant to the provisions of Sections 3.3 or 3.4 such failure shall be deemed an election by Franchisee not to exercise its Successor Agreement Right and shall automatically cause Franchisee's Successor Agreement Right to lapse and expire.

• 3.4 Conditions Precedent to Entering into a Successor Franchise Agreement. Franchisee's Successor Agreement Right is conditioned upon the fulfillment of each and all of the following conditions precedent:

  • 3.4.1 At the time Franchisee delivers its Notice of Election to Company, Company is then-offering franchises in the state where the Location is located.
  • 3.4.2 At the time Franchisee delivers its Notice of Election to Company, and at all times thereafter until the commencement of the Successor Term, Franchisee shall not have been, nor be, in default of its material obligations under this Agreement.
  • 3.4.3 At Company's request, Franchisee shall, prior to the date of commencement of the Successor Term, have undertaken and completed at its expense, the remodeling, renovation, modernization, or refurbishing of the Premises and the Franchised Business, which may include installation of new or replacement FFE to comply with the Standards for new Restaurants.
  • 3.4.4 Without limiting the generality of Section 3.4.1, Franchisee shall not have committed 3 or more material defaults of this Agreement during the prior 36 month period during the Term for which Company shall have delivered notices of default, whether or not such defaults were cured.
  • 3.4.5 Franchisee, and Franchisee's employees, as applicable, shall comply with Company's then-current qualification, training and certification requirements at Franchisee's expense.
  • 3.4.6 Concurrently with the execution of the Successor Franchise Agreement, Franchisee shall, and shall cause each of its Affiliates and owners / g

Source: Item 22 — CONTRACTS (FDD page 54)