Under what circumstances can Angry Chickz franchisees seek treble damages?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise.
- Construction. In all other respects, the Area Development Agreement will be construed and enforced in accordance with its terms.
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the Effective Date identified below.
| "Company" | "Developer" |
|---|---|
| ANGRY CHICKZ FRANCHISING LLC, a California limited liability company | , [ ] an individual [ ] a general partnership; |
| By: | [ ] a limited partnership; [ ] a limited liability company; |
| Name: | [ ] a corporation; |
| Its: | By: |
| Date of signing: | Name: Its: Date of signing: |
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
- (a) A prohibition on the right of a franchisee to join an association of franchisees.
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
- (d) A provision that permits a Franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration, of the franchisee's inventory, supplies, equipment, fixtures, and furnishings. Personalized materials which have no value to the Franchisor and inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation. This subsection applies only if: (i) the term of the franchise is less than 5 years; and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising, or other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not receive at least 6 months advance notice of Franchisor's intent not to renew the franchise.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document, the circumstances under which a franchisee can seek treble damages are not explicitly detailed in the provided excerpts. However, the document includes addenda for specific states like Michigan and Minnesota that address franchisee rights and protections.
Specifically, the Michigan addendum outlines certain unfair provisions that are void and unenforceable, such as prohibitions on joining franchisee associations or requirements to waive rights and protections under the act. The Minnesota addendum mentions compliance with Minnesota Statute 80C.14 Subd. 3-5 regarding termination and non-renewal notices. These state-specific provisions suggest that franchisees' rights and remedies, including the potential for seeking treble damages, are governed by state franchise laws.
To fully understand the circumstances in which an Angry Chickz franchisee might be able to seek treble damages, a prospective franchisee should carefully review the franchise agreement and any state-specific addenda, and consult with legal counsel to understand their rights and obligations under applicable state franchise laws. They should specifically inquire about provisions related to termination, renewal, and dispute resolution, as well as any remedies available for violations of the franchise agreement or state franchise laws.