Whose decisions are final regarding the disposition of a claim related to Angry Chickz Marks?

According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz retains ultimate authority over decisions regarding claims related to its trademarks. While a franchisee may participate in the defense or settlement of a claim of infringement at their own expense, Angry Chickz's decisions are final. This means that Angry Chickz has the power to decide how to proceed with any legal action or settlement negotiations related to the Angry Chickz Marks.

This provision is typical in franchising, as the franchisor needs to protect its brand and trademarks consistently across all franchise locations. Allowing individual franchisees to make independent decisions about trademark disputes could lead to inconsistent or even detrimental outcomes for the overall brand.

For a prospective Angry Chickz franchisee, this means they must relinquish control over legal strategies and settlement terms related to trademark issues. While they can be involved and voice their opinion, the final decision rests with Angry Chickz. Franchisees should be aware of this and understand that their interests may not always align perfectly with the franchisor's when it comes to trademark litigation. Franchisees are also prohibited from communicating with any entity regarding any infringement, challenge, or claim other than Angry Chickz, its licensor, and their respective attorneys.

This arrangement underscores the importance of a strong relationship between the franchisee and Angry Chickz. Open communication and a clear understanding of each party's rights and responsibilities are crucial for navigating any potential trademark disputes effectively. Franchisees should seek clarification from Angry Chickz regarding their approach to trademark protection and dispute resolution during the due diligence process.