What is the timeframe an Angry Chickz franchisee has to release a mechanic's lien against the franchised business?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
at any other time upon Company's request, said holders shall reexecute a written guaranty in a form prescribed by Company.
ARTICLE 14 DEFAULT AND TERMINATION
- 14.1 General. Company shall have the right to terminate this Agreement only for "cause". "Cause" is hereby defined as a default of this Agreement. Company shall exercise its right to terminate this Agreement in the following circumstances and manners.
- 14.2 Automatic Termination Without Notice. Subject to Applicable Laws of the jurisdiction in which the Franchised Business is operated to the contrary, Franchisee shall be deemed to be in default under this Agreement, and all rights granted herein shall at Company's election automatically terminate without notice to Franchisee if: (i) Franchisee shall be adjudicated bankrupt or judicially determined to be insolvent (subject to any contrary provisions of Applicable Law), shall admit to its inability to meet its financial obligations as they become due, or shall make a disposition for the benefit of its creditors; (ii) a judgment against Franchisee in the amount of more than $25,000 remains unsatisfied for a period of more than 30 days (unless an appeal bond has been filed); (iii) the Franchised Business, the Premises, or any of the Assets are seized, taken over or foreclosed by a government official in the exercise of its duties, or seized, taken over, or foreclosed by a creditor or lienholder provided that a final judgment against the Franchisee remains unsatisfied for 30 days (unless an appeal bond has been filed); (iv) a levy of execution or attachment has been made upon the license granted by this Agreement or upon any of the Assets, and it is not discharged within 5 days of such levy or attachment; (v) Franchisee permits any recordation of a notice of mechanics lien against the Franchised Business or
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a franchisee has 60 days to release a mechanic's lien against the franchised business. Specifically, if a franchisee permits any recordation of a notice of mechanics lien against the Franchised Business or any equipment at the Franchised Business, they have 60 days to get it released. Failure to do so within this timeframe constitutes a default under the Franchise Agreement.
This requirement is important because it protects the Angry Chickz brand and the franchisor's interests by ensuring that the franchised business remains free from encumbrances that could negatively impact its operation or reputation. A mechanic's lien could cloud the title to the property or equipment, potentially hindering the business's ability to operate smoothly or secure financing.
For a prospective Angry Chickz franchisee, this means being proactive in managing any construction or renovation projects to avoid disputes with contractors that could lead to a mechanic's lien. It also means acting quickly to resolve any such liens if they do arise, either through payment, bonding off the lien, or legal action, to ensure compliance with the franchise agreement and avoid potential termination.