Does the definition of 'Assets' in the Angry Chickz Franchise Agreement include chattel paper?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
"Agreement" means this Franchise Agreement, together with all exhibits and addenda to this Franchise Agreement.
"Applicable Law" means applicable common law and all applicable statutes, laws, rules, regulations, ordinances, policies and procedures established by any Governmental Authority, including, those governing the development, construction and operation of the Franchised Business, including all health and safety, labor, immigration, food and drug laws and regulations, the Americans with Disabilities Act, zoning laws, construction codes, and permit variance, conditional use permit or similar requirements and conditions, all as may be amended, supplemented or enacted from time to time.
"Assets" means all of the following personal property and assets owned by Franchisee or in which Franchisee otherwise has any rights, and located at, or used in connection with the Franchised Business: (a) all accounts, licenses, permits, and contract rights, including this Agreement, leasehold interests, all telephone and telecopier numbers, telephone and other directory listings, websites, email addresses, social media and other electronic accounts, profiles and listings associated with the Franchised Business, intellectual property derived from and created in connection with the Franchised Business (to the extent not assigned to Company), general intangibles, receivables, claims of Franchisee, all guaranties and security therefor and all of Franchisee's right, title and interest in the goods purchased and represented by any of the foregoing; (b) all chattel paper including electronic chattel paper and tangible chattel paper; (c) all
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the definition of 'Assets' within the Franchise Agreement does include chattel paper. Specifically, the definition encompasses all personal property and assets owned by the franchisee or in which the franchisee has rights, located at or used in connection with the franchised business.
This definition extends to various items such as accounts, licenses, permits, contract rights (including the Franchise Agreement itself), leasehold interests, telephone numbers, directory listings, websites, email addresses, social media accounts, intellectual property, general intangibles, receivables, and claims. Importantly, it explicitly includes 'all chattel paper including electronic chattel paper and tangible chattel paper.'
For a prospective Angry Chickz franchisee, this means that any chattel paper associated with the business is considered part of the assets as defined in the agreement. Chattel paper typically involves a security agreement combined with a promissory note, often used in financing equipment or other tangible personal property. This inclusion could have implications in the event of a transfer, termination, or other significant event affecting the franchise, as these assets would be subject to the terms of the Franchise Agreement.