In the context of an Angry Chickz franchise assignment, what constitutes an 'Owner' as defined by the agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
identifying the modifications); (b) that Franchisee is not in default under any provision of this Agreement, or if in default, describing the nature thereof in detail; and (c) as to such other matters as Company may reasonably request; and Franchisee agrees that any such statements may be relied upon by Company and any prospective purchaser, assignee or lender of Company.
13.2 Assignment by Franchisee.
- 13.2.1 The rights and duties created by this Agreement are personal to Franchisee. This Agreement has been entered into by Company in reliance upon and in consideration of the singular individual or collective character, reputation, skill attitude, business ability, and financial capacity of Franchisee, or if applicable, its Owners who will actively and substantially participate in the development ownership and operation of the Franchised Business. Accordingly, neither Franchisee nor any Owner (other than Company, if applicable) shall cause or permit any Assignment without Company's prior written consent.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement emphasizes that the rights and duties within the agreement are personal to the franchisee. When considering an assignment of the franchise, Angry Chickz focuses on the individual or collective character, reputation, skill, attitude, business ability, and financial capacity of the franchisee, or its owners, who will actively participate in the business.
Specifically, regarding the definition of an 'Owner' in the context of an assignment, the document states that if the franchisee is an entity, the franchisee must promptly provide written notice to Angry Chickz of each issuance of equity and every transfer, assignment, and encumbrance by any owner of any direct or indirect equity or voting rights in the franchisee. This applies even if the action does not constitute an 'Assignment' as defined elsewhere in the agreement.
This means that Angry Chickz wants to be informed about any changes in ownership or equity within the franchisee's business structure, ensuring they maintain control over who is involved in the franchise. This requirement helps Angry Chickz assess the ongoing suitability of the franchise ownership and management, and it protects their interests by ensuring they are aware of any shifts in control or financial stakes within the franchise entity.