In the context of an Angry Chickz franchise assignment, what happens if the transferee/assignee fails to obtain the necessary licenses and permits for operating the restaurant?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) that the transferee/assignee shall have demonstrated to Company's satisfaction that it meets all of Company's then-current Standards for new Restaurant operators or for holders of an interest in a franchise or license, including satisfactory credit ratings, acceptable business qualifications, the ability to obtain or acquire the license(s) and permit(s) necessary for the operation of the Restaurant, and the ability to fully comply with the terms of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a condition for the approval of a franchise assignment is that the transferee/assignee demonstrates to Angry Chickz's satisfaction the ability to obtain or acquire the licenses and permits necessary for the operation of the restaurant.
This requirement ensures that the new franchisee can legally and effectively operate the Angry Chickz restaurant. If the transferee/assignee cannot meet this standard, Angry Chickz may not approve the assignment. This protects the brand and ensures compliance with all applicable laws and regulations.
Prospective franchisees should carefully consider this requirement and ensure that any potential transferee/assignee is capable of meeting all licensing and permitting requirements before proceeding with an assignment. Failure to do so could result in the assignment being rejected by Angry Chickz.