Does the definition of 'Assets' in the Angry Chickz Franchise Agreement include leasehold interests?
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 explicitly includes leasehold interests. This means that the leasehold interests associated with the franchised business location are considered assets owned by the franchisee or in which the franchisee has rights. This definition extends to all personal property and assets located at or used in connection with the Angry Chickz franchised business.
Specifically, the definition encompasses a wide range of items, including accounts, licenses, permits, and contract rights, with the Franchise Agreement itself being listed as an asset. It also includes telephone and telecopier numbers, directory listings, websites, email addresses, social media accounts, and intellectual property created in connection with the franchised business (to the extent not assigned to the company). The definition further extends to general intangibles, receivables, claims of the franchisee, guaranties, security, and the franchisee's rights in purchased goods.
For a prospective Angry Chickz franchisee, this comprehensive definition of 'Assets' has significant implications. It means that upon termination or transfer of the franchise, these assets, including the leasehold interests, are subject to the terms and conditions outlined in the Franchise Agreement. The franchisor may have rights or options regarding these assets, particularly the lease, as detailed elsewhere in the FDD, such as the option to assume the lease or execute a substitute lease. Therefore, franchisees should carefully review the provisions related to asset ownership, transfer, and termination in the Franchise Agreement to fully understand their rights and obligations.