Within each Development Period, what must an Angry Chickz Developer do regarding the number of Dine-In Restaurants?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
of advertising and promotion;
- (d) to develop, acquire, merge with, or otherwise become associated with other concepts (including dual branding and/or franchise systems), whether or not using the System and/or the Marks, and award franchises and/or licenses under other concepts for locations anywhere; and
- (e) own, use, license, maintain, and otherwise deal with consumer, vendor, and sales information, including such customer, vendor and sales information from customers purchasing goods or services from Developer.
ARTICLE 2 DEVELOPER'S DEVELOPMENT OBLIGATION
2.1 Development Obligation.
- 2.1.1 Within each Development Period specified in Exhibit B, Developer shall construct, equip, open and thereafter continue to operate within the Development Area, not less than the cumulative number of Dine-In Restaurants required by the Development Obligation for that Development Period. Restaurants developed hereunder which are open and operating and which have been assigned to Affiliates of Developer in accordance with Section 7.2.2 with Company's consent, shall count in determining whether Developer has satisfied the Development Obligation for so long as the applicable Affiliate continues to satisfy the conditions set forth in Section 7.2.2.
- 2.1.2 If, during the Term, Developer ceases to operate any Restaurant developed and opened under this Agreement with Company's prior written consent and for no other reason, Developer must develop a replacement Restaurant (a "Replacement Restaurant") in the Development Area to fulfill Developer's obligation to have constructed, equipped, opened and thereafter operate the required number of Restaurant at the expiration of each Development Period. Developer may not, however, cease operating any Restaurant or obtain a Replacement Restaurant without Company's prior written consent. Developer must construct, equip, open and thereafter operate each Replacement Restaurant within 12 months after the date of the closing of the Restaurant that it will replace. During such 12-month period, the Replacement Restaurant shall be considered open and operated for purposes of determining Developer's compliance with the Development Obligation.
2.2 Force Majeure
- 2.2.1 Subject to Developer's continuing compliance with Section 2.2.2, should Developer be unable to meet the Development Obligation for any Development Period solely as the result of Force Majeure or any legal disability of Company to deliver a Franchise Disclosure Document pursuant to Section 6.2, which results in the inability of Developer to construct or operate the Restaurants in all or substantially all of the Development Area, the particular Development Period during which the event of Force Majeure (or Company's legal disability to deliver a Franchise Disclosure Document) occurs shall be extended by an amount of time equal to the time period during which the Force Majeure (or Company's legal disability to deliver a Franchise Disclosure Document) shall have existed during that Development Period.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a developer must construct, equip, open, and operate a minimum number of Dine-In Restaurants within their Development Area during each Development Period, as specified in Exhibit B of the agreement. These restaurants must remain operational to count towards fulfilling the development obligation.
If a developer ceases operation of a restaurant with Angry Chickz's prior written consent, they must develop a Replacement Restaurant within 12 months. During this 12-month period, the Replacement Restaurant is considered open and operating for compliance purposes. However, ceasing operations or obtaining a Replacement Restaurant requires Angry Chickz's prior written consent.
Developers have the option to exceed their development obligations by opening more Dine-In Restaurants than required, with Angry Chickz's prior written consent. This consent may involve additional fees or an amendment to the agreement. Failure to meet the development obligations can result in the termination of the agreement, allowing Angry Chickz to operate or license others to operate restaurants within the Development Area.