Can the Angry Chickz company waive any of the conditions it imposes for granting consent to an assignment?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
If Company grants its consent, Company may impose any condition, including some or all of the following (any of which may be waived by Company), each of which the parties deem to be reasonable:
- (a) that Franchisee provide a detailed description of the price and all material terms and conditions of the proposed Assignment and the identity of the proposed assignee and such other information as Company may reasonably request;
- (b) that Franchisee's rights and obligations to occupy such location shall have been assigned to, and assumed by, the transferee, and that any applicable consent to such transfer has been obtained, and all pertinent documentation been delivered to Company for Company's review and acceptance;
- (c) that Franchisee's right to receive payments in connection with the Assignment shall be subordinated to Company's rights to receive any outstanding monetary obligations or other outstanding obligations due from Franchisee or transferee under any agreement with Company or any Affiliate, whether arising before or after the Assignment;
- (d) that Franchisee provides Company a true and correct list of all Owners having an interest in this Agreement or in Franchisee, the percentage interest of Owner, and a list of all officers and directors, in such form as Company may require;
- (e) that Franchisee shall have complied with Section 13.3 and Company shall not have exercised the ROFR;
- (f) that Franchisee shall not be in default under the terms of this Agreement (or any other related agreement), all agreements with Company's Affiliates, the Manual(s) or any other obligations owed Company;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, when a franchisee seeks to assign their franchise agreement to a new party, Angry Chickz has the discretion to waive certain conditions it typically imposes for granting consent. This flexibility is explicitly stated within the assignment terms outlined in the franchise agreement.
The FDD specifies that Angry Chickz may impose various conditions when a franchisee wants to assign their agreement. These conditions can include requirements related to providing detailed information about the assignment, ensuring the transferee assumes the location obligations, subordinating the franchisee's right to receive payments, providing a list of owners and their interests, complying with the right of first refusal, and ensuring the franchisee is not in default. However, the key point is that Angry Chickz retains the right to waive any of these conditions.
For a prospective Angry Chickz franchisee, this means that while there are standard requirements for assignment, the franchisor has some flexibility. This could be beneficial in certain circumstances where strict adherence to every condition might hinder a legitimate and otherwise acceptable transfer. However, it also introduces an element of uncertainty, as the franchisee cannot assume that any particular condition will be waived. Franchisees should discuss with Angry Chickz what factors might influence their willingness to waive conditions in a specific assignment scenario.