Is each assignee or transferee of the Obligations entitled to the benefits of the Angry Chickz Continuing Guaranty?
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, any assignee or transferee of the obligations associated with the franchise agreement is entitled to the benefits of the Continuing Guaranty. Specifically, each immediate and successive assignee or transferee is entitled to the benefits to the extent of their interest in the obligations, as if they were Angry Chickz Franchising LLC itself.
This clause ensures that if Angry Chickz assigns or transfers any of the franchisee's obligations to another party, that party also receives the protection and benefits of the Continuing Guaranty. This is a standard practice in franchising, as it allows the franchisor to transfer its rights and interests while maintaining the integrity of the agreement.
For a prospective Angry Chickz franchisee, this means that the obligations under the Continuing Guaranty remain intact even if the original franchisor assigns its rights to a third party. This provides a level of assurance that the terms and conditions of the agreement will continue to be honored, regardless of any changes in ownership or management on the franchisor's side.