What is the definition of 'Franchisee' according to the Angry Chickz Continuing Guaranty?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2 All references herein to Franchisee shall be deemed to include its successors and permitted assigns, and all references herein to Guarantor shall be deemed to include Guarantor and Guarantor's successors and permitted assigns and, upon the death of a Guarantor, the duly appointed representative, executor or administrator of the Guarantor's estate.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Continuing Guaranty agreement specifies that all references to 'Franchisee' include its successors and permitted assigns. This means that the obligations and agreements outlined in the guaranty extend not only to the original franchisee but also to any individuals or entities that subsequently take over the franchise with Angry Chickz's permission.
This clause ensures that Angry Chickz's interests are protected even if the franchise ownership changes hands. The new franchisee or assignee will be bound by the same terms and conditions as the original franchisee, particularly concerning financial obligations and adherence to the franchise agreement. This provides Angry Chickz with a consistent and reliable framework for enforcing its rights and maintaining the integrity of the franchise system.
For a prospective Angry Chickz franchisee, this has significant implications. If they plan to sell or transfer their franchise in the future, they need to understand that the Continuing Guaranty will remain in effect, potentially affecting the terms of the transfer and the obligations of the new franchisee. It also highlights the importance of carefully selecting a successor or assignee who is capable of meeting the financial and operational requirements of the franchise agreement, as their performance will directly impact the guarantor's obligations.