Under what circumstances is Angry Chickz not liable to the Developer for consequential damages related to delays in delivering the Franchise Disclosure Document?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.3 No Consequential Damages For Legal Incapacity.
Company shall not be liable to Developer for any consequential damages, including lost profits, interest expense, increased construction or occupancy costs, or other costs and expenses incurred by Developer by reason of any delay in the delivery of Company's Franchise Disclosure Document caused by legal incapacity during the Term, or other conduct not due to the gross negligence or intentional misfeasance of Company.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz is not liable to the Developer for consequential damages related to delays in delivering the Franchise Disclosure Document under specific circumstances. These circumstances involve legal incapacity or conduct that is not due to gross negligence or intentional misfeasance on the part of Angry Chickz.
Specifically, Angry Chickz will not be responsible for consequential damages such as lost profits, interest expenses, increased construction or occupancy costs, or other related expenses incurred by the Developer if the delay in delivering the Franchise Disclosure Document is caused by legal incapacity during the term of the agreement. This protection from liability extends to other conduct that is not a result of gross negligence or intentional misconduct by Angry Chickz.
This clause protects Angry Chickz from being held liable for extensive financial losses suffered by the Developer due to delays that are outside of Angry Chickz's direct control or not caused by significant fault on their part. However, it implies that Angry Chickz could be liable for consequential damages if the delay is a result of their gross negligence or intentional misfeasance.