What is the definition of a 'Subsidiary' in the context of an Angry Chickz franchise agreement?

According to the 2025 Angry Chickz Franchise Disclosure Document, the term 'subsidiary' is mentioned in the context of third-party beneficiaries. Specifically, Angry Chickz and its parent, affiliates, and subsidiaries are designated as third-party beneficiaries under the General Release.

However, the FDD does not provide a specific definition of what constitutes a 'subsidiary.' This means that the document assumes a general understanding of the term. In business, a subsidiary is typically defined as a company that is owned or controlled by another company, which is called the parent company or holding company. The level of ownership that confers control varies, but often it is more than 50% of the subsidiary's voting stock.

For a prospective Angry Chickz franchisee, this lack of a formal definition within the FDD could have implications. While the general understanding of 'subsidiary' usually applies, it is important to clarify with Angry Chickz what specific entities they consider to be subsidiaries. This is especially relevant if any dealings or disputes arise involving these entities, as the General Release extends certain protections and rights to them. A franchisee should seek explicit clarification to fully understand the scope and implications of this provision.

Therefore, it is advisable for potential franchisees to seek clarification from Angry Chickz regarding the definition of 'subsidiary' to ensure a complete understanding of their rights and obligations under the franchise agreement.