Is a change in ownership of an entity considered a transfer of an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| assign to us (at our option) all internet web pages, email address, social media listings, domain names and other registrations containing the marks. If applicable, pay liquidated damages. See also "r" below. | ||
| j. Assignment of | § 13.1 | No restriction on our right to assign. |
| contract by | ||
| Franchisor | ||
| k. "Transfer" by | § 13.2.1 | Includes transfer of the agreement or change in ownership of a franchisee which is an entity. |
| franchisee – defined |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a change in ownership of a franchisee that is an entity is considered a transfer. Specifically, the FDD states that the definition of "transfer" by a franchisee includes a change in the ownership of the franchisee if the franchisee is a business entity.
As a result, if a franchisee operates their Angry Chickz restaurant through a corporation, LLC, or other business entity, any change in the ownership of that entity will be treated as a transfer of the franchise itself. This is a crucial point for franchisees to understand, as transfers are subject to Angry Chickz's approval and various conditions outlined in the Franchise Agreement.
Angry Chickz requires express written consent for transfers. The franchisee must provide a detailed description of the price and material terms, a list of owners, and comply with the right of first refusal. The franchisee must also not be in default, be current with obligations to third parties, sign a release, have no pending suits, pay a transfer fee, and agree to a non-competition agreement. The new franchisee must qualify, have the right to occupy the location, assume the Franchise Agreement, agree to refurbish the restaurant, and complete training. These stipulations ensure that any change in ownership meets Angry Chickz's standards and protects the brand's interests.