Under what conditions can an Angry Chickz franchisee terminate the franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- (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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, specific conditions for franchisee termination are addressed in an addendum for the state of Michigan. This addendum clarifies that Angry Chickz cannot terminate a franchise before its term expires unless there is "good cause."
"Good cause" is defined as the franchisee's failure to comply with any lawful provision of the franchise agreement. However, Angry Chickz must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The addendum specifies that this cure period does not need to exceed 30 days. This provision aims to protect franchisees from arbitrary or unfair termination by setting a clear standard for what constitutes grounds for termination and requiring a notice and cure period.
This protection is specific to Michigan, as indicated by the addendum. Franchisees in other states should refer to their specific state addendums and the franchise agreement to understand their termination rights. It is important for prospective Angry Chickz franchisees to carefully review the termination provisions in the franchise agreement and any state-specific addenda to understand their rights and obligations fully.