Under what condition can Angry Chickz require that the franchisee repair or reconstruct the location and the Franchised Business in conformance with the Standards for new Restaurants?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ithin 60 days, and thereafter diligently pursue such repairs or reconstruction to completion; any such repair and reconstruction shall be completed as soon as reasonably practicable but in any event within six (6) months following the event causing the damage or destruction. If, in Company's reasonable judgment, the damage or destruction is of such a nature or to such extent that it is feasible for Franchisee to repair or reconstruct the Location and the Franchised Business in conformance with the Standards for new Restaurants, Company may require that
Franchisee repair or reconstruct the Premises and Franchised Business in conformance with the Standards for new Restaurants.
- 5.6 Relocating the Franchised Business. Franchisee may not relocate the Franchised Business without Company's prior written consent.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz can require a franchisee to repair or reconstruct their location and franchised business to meet the standards for new restaurants if the existing location is damaged or destroyed by fire or any other casualty. This is contingent on Angry Chickz's reasonable judgment that such repair or reconstruction to the standards for new restaurants is feasible.
This provision is important for prospective franchisees as it outlines the potential financial burden and operational disruption that could arise from unforeseen events like fire or natural disasters. If the damage is significant enough, Angry Chickz has the right to enforce a complete overhaul of the restaurant to match current brand standards, which could involve substantial costs for the franchisee. The franchisee is required to commence repairs or reconstruction within 60 days of the event and complete the process within six months.
It is important to note that the FDD does not define "feasible" in this context, leaving room for interpretation by Angry Chickz. A prospective franchisee should seek clarity from Angry Chickz regarding the criteria used to determine feasibility and the potential costs associated with such a reconstruction. Understanding these factors is crucial for assessing the overall risk and potential financial obligations of owning an Angry Chickz franchise.