Under what circumstances would Angry Chickz be liable for consequential damages to the Developer?

According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz will not be liable to the Developer for consequential damages except in specific circumstances. The franchise agreement stipulates that Angry Chickz is not liable for consequential damages resulting from delays in delivering the Franchise Disclosure Document due to legal incapacity during the term, or other conduct not due to gross negligence or intentional misfeasance on the part of Angry Chickz. Consequential damages include items such as lost profits, interest expense, and increased construction or occupancy costs.

This provision protects Angry Chickz from liability for indirect losses a developer might incur due to circumstances beyond the company's direct control or fault, such as legal incapacities that cause delays. However, this protection does not extend to situations where Angry Chickz demonstrates gross negligence or intentional misconduct. In those cases, the developer may have grounds to seek consequential damages.

For a prospective Angry Chickz franchisee, this means that while the franchise agreement aims to limit Angry Chickz's liability for indirect losses, it does not shield them from responsibility for their own gross negligence or intentional misconduct. It is important for the franchisee to understand the implications of this clause and to seek legal counsel to fully understand their rights and obligations under the franchise agreement.