Does the definition of 'Assets' in the Angry Chickz Franchise Agreement include intellectual property derived from and created in connection with the Franchised Business?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
"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 intellectual property. 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 explicitly includes intellectual property that is derived from and created in connection with the Angry Chickz franchised business, to the extent that it is not already assigned to the company (the franchisor). This means that any trademarks, copyrights, or other intellectual property developed by the franchisee in the course of operating the franchise, which are not otherwise owned by Angry Chickz Franchising LLC, are considered assets of the franchisee.
For a prospective Angry Chickz franchisee, this is an important distinction. It clarifies the ownership of intellectual property created during the franchise operation. However, it is crucial to understand the conditions under which intellectual property might already be assigned to Angry Chickz, as this would exclude it from the franchisee's assets. A potential franchisee should seek clarification on what intellectual property Angry Chickz claims ownership of and what rights the franchisee retains over creations developed during the franchise term.