Under what condition is an Angry Chickz franchisee prohibited from entering into a lease or purchase agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
obligations on behalf of Company, or grant to lessor any rights against Company, nor agree to any other term, condition, or covenant which is inconsistent with any provision of this Agreement; (iv) the lease for the Location shall be for a term (including options) which is not less than the Term (and the Successor Term), unless Company approves a shorter term of the lease in writing; (v) the lease for the Location shall not contain a non-competition covenant which purports to restrict Company, or any franchisee or licensee of Company (or its Affiliates), from operating a Restaurant or any other retail establishment, unless such covenant is accepted by Company in writing prior to the execution of the lease for the Location; (vi) Franchisee shall duly and timely perform all of the terms, conditions, covenants and obligations imposed upon Franchisee under the lease; and (vii) a fully executed copy of the lease for the Location shall be delivered to Company within 10 days after execution. The lease for the Location shall include the addendum attached as Exhibit D unless Company otherwise consents in writing.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, an Angry Chickz franchisee is restricted from agreeing to terms in a lease that impose obligations on Angry Chickz itself or grant rights against Angry Chickz to the lessor.
Specifically, the franchisee cannot agree to any term, condition, or covenant that is inconsistent with the Franchise Agreement. This protects Angry Chickz from being bound by lease terms negotiated independently by the franchisee that could conflict with the overall franchise system standards and agreements.
Additionally, the franchisee's lease term must match the Franchise Agreement term, unless Angry Chickz approves a shorter lease in writing. The lease also cannot contain non-competition clauses that would restrict Angry Chickz or its other franchisees, unless Angry Chickz agrees to the restriction in writing before the lease is signed. These stipulations ensure Angry Chickz maintains control over its brand and market presence, and that the franchisee's lease aligns with the franchise agreement.