Under what conditions can Angry Chickz terminate the agreement without an opportunity to cure?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
MINATION**
14.1 General. Company shall have the right to terminate this Agreement only for "cause". "Cause" is hereby defined as a default of this Agreement. Company shall exercise its right to terminate this Agreement in the following circumstances and manners.
14.2 Automatic Termination Without Notice. Subject to Applicable Laws of the jurisdiction in which the Franchised Business is operated to the contrary, Franchisee shall be deemed to be in default under this Agreement, and all rights granted herein shall at Company's election automatically terminate without notice to Franchisee if: (i) Franchisee shall be adjudicated bankrupt or judicially determined to be insolvent (subject to any contrary provisions of Applicable Law), shall admit to its inability to meet its financial obligations as they become due, or shall make a disposition for the benefit of its creditors; (ii) a judgment against Franchisee in the amount of more than $25,000 remains unsatisfied for a period of more than 30 days (unless an appeal bond has been filed); (iii) the Franchised Business, the Premises, or any of the Assets are seized, taken over or foreclosed by a government official in the exercise of its duties, or seized, taken over, or foreclosed by a creditor or lienholder provided that a final judgment against the Franchisee remains unsatisfied for 30 days (unless an appeal bond has been filed); (iv) a levy of execution or attachment has been made upon the license granted by this Agreement or upon any of the Assets, and it is not discharged within 5 days of such levy or attachment; (v) Franchisee permits any recordation of a notice of mechanics lien against the Franchised Business or any equipment at the Franchised Business which is not released within 60 days, or if any person commences any action to foreclose on the Franchised Business or said equipment; (vi) Franchisee allows or permits any judgment to be entered against Company or any of its Affiliates, arising out of or relating to the operation of the Franchised Business; or (vii) a condemnation or transfer in lieu of condemnation has occurred.
14.3 Option to Terminate Without Opportunity to Cure. Franchisee shall be deemed to be in default and Company may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon notice by Company upon the occurrence of any of the following events:
- 14.3.1 Abandonment. If Franchisee shall abandon the Franchised Business. For purposes of this Agreement, "abandon" shall refer to Franchisee's failure, at any time during the Term, to operate the Franchised Business for business for a period of 5 consecutive days.
14.3.2 Assignment, Death or Incapacity. If Franchisee shall purport to make any Assignment without the prior written consent of Company;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, there are specific conditions under which the company can terminate the franchise agreement without giving the franchisee an opportunity to correct the issue. These conditions fall under two main categories: automatic termination without notice and termination with the option to terminate without opportunity to cure.
Automatic termination without notice occurs if the franchisee is adjudicated bankrupt or insolvent, admits inability to meet financial obligations, or makes a disposition for the benefit of creditors. It also occurs if a judgment against the franchisee exceeding $25,000 remains unsatisfied for over 30 days (unless an appeal bond is filed). Further conditions include the Franchised Business or its assets being seized by a government official, creditor, or lienholder with a final judgment unsatisfied for 30 days (unless an appeal bond is filed); a levy of execution or attachment on the franchise license or assets not discharged within 5 days; permitting a mechanics lien against the business or equipment that is not released within 60 days, or if foreclosure actions commence; allowing a judgment against Angry Chickz or its affiliates due to the franchisee's operation; or if condemnation or transfer in lieu of condemnation occurs.
Angry Chickz may also opt to terminate the agreement immediately without an opportunity to cure if the franchisee abandons the business or engages in unauthorized use, disclosure, or duplication of confidential information. Additionally, if the franchisee's conduct or operation poses an imminent danger to public health, such as selling spoiled food knowingly or failing to comply with health codes, Angry Chickz can terminate the agreement without allowing the franchisee to correct the issue. This also applies to selling expired or unauthorized products after a notice of default, regardless of whether the franchisee has attempted to cure the default after multiple notices.
These termination conditions are stricter than the standard termination with notice and opportunity to cure, where franchisees typically have 30 days (or 5 days for payment defaults) to remedy a breach after receiving written notice. The immediate termination clauses highlight the critical importance Angry Chickz places on financial solvency, legal compliance, protection of confidential information, and maintaining public health and safety standards. A prospective franchisee should carefully consider these terms and ensure they have the resources and commitment to meet these obligations to avoid potential immediate termination of their franchise agreement.