Can Angry Chickz assign or transfer any or all of the Obligations without notice to the Guarantor?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, from time to time, without notice to Guarantor, assign or transfer any or all of the Obligations or any interest therein and, notwithstanding any assignment(s) or transfer(s), the Obligations shall be and remain Obligations for the purpose of this Continuing Guaranty.
Each and every immediate and successive assignee or transferee of any of the Obligations or of any interest therein shall, to the extent of such party's interest in the Obligations, be entitled to the benefits of this Continuing Guaranty to the same extent as if such assignee or transferee were Franchisor.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz has the right to assign or transfer any or all of the obligations or any interest within them without providing notice to the guarantor. This means that Angry Chickz can transfer its rights and responsibilities under the franchise agreement to another party without informing the guarantor. The obligations will remain in effect even after any assignments or transfers.
Furthermore, any assignee or transferee of the obligations is entitled to the benefits of the Continuing Guaranty to the same extent as Angry Chickz. This ensures that the new party holding the obligations has the same rights and protections under the guaranty as Angry Chickz originally did.
This clause is significant for potential guarantors as it means they could be held responsible to a completely different entity than the original franchisor without prior notification. Guarantors should carefully consider this aspect and seek legal counsel to fully understand the implications of such an arrangement.