Is the Angry Chickz agreement binding on the successors and assigns of both the company and the developer?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.6 Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the successors and assigns of Company and shall be binding upon and inure to the benefit of Developer and his or their respective, heirs, executors, administrators, and its successors and assigns, subject to the prohibitions and restrictions against Assignment contained herein.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement is indeed binding on both the company's and the developer's successors and assigns. This means that if Angry Chickz or the developer sells the business or transfers their rights, the new owner or entity will be obligated to uphold the terms of the original franchise agreement. This provides a level of security and continuity for both parties involved.
Specifically, the agreement extends to the heirs, executors, and administrators of the developer, further ensuring that obligations are maintained even in the event of the developer's passing. However, this is subject to any prohibitions and restrictions against assignment that are outlined elsewhere in the agreement, meaning there may be limitations on who the developer can transfer their rights to.
This clause is a fairly standard inclusion in franchise agreements, as it protects the interests of both the franchisor and the franchisee by ensuring that the contractual obligations remain in place even if ownership changes. It's important for prospective Angry Chickz franchisees to carefully review the sections of the agreement that discuss assignment to fully understand any limitations or conditions that may apply to the transfer of their franchise rights.