What documentation is the Angry Chickz franchisee required to deliver to the company at closing?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.3.4 Company shall pay Franchisee the purchase price (by corporate check, or offset, or a combination, as applicable) at closing of the purchase; the closing shall take place at a time and place designated by Company within ninety (90) calendar days after Franchisee receives Company's notice of exercise of the purchase option; at closing, Franchisee shall deliver to Company an assignment (and other documentation as Company deems appropriate) transferring good and marketable title to the assets selected by Company, free of liens and encumbrances, with all sales and other transfer taxes paid by Franchisee;
- 15.3.5 If Company elects, then the parties shall comply with applicable bulk sales provisions of the commercial code in the state where the Franchised Business is located, and Company shall have the right to delay the closing until such compliance is completed; and
- 15.3.6 At Company's election, as part of the purchase Franchisee shall deliver to Company an assignment of the lease for the Location (or, if assignment is prohibited, a sublease for the full remaining term and on the same terms as Franchisee's lease); if Franchisee owns the Location, Franchisee shall lease the Location to Company pursuant to the terms of a form lease reasonably designated by Company, for a term selected by Company up to 5 years with two successive 5-year renewal options at fair market rental during the initial and renewal terms.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchisee must deliver an assignment and other documentation that Angry Chickz deems appropriate at closing. This assignment transfers good and marketable title to the assets selected by Angry Chickz, free of liens and encumbrances. The franchisee is also responsible for paying all sales and other transfer taxes.
Additionally, if Angry Chickz elects, the franchisee must deliver an assignment of the lease for the location. If assignment is prohibited, the franchisee must provide a sublease for the full remaining term on the same terms as the franchisee's lease. If the franchisee owns the location, they are required to lease the location to Angry Chickz under the terms of a lease form designated by Angry Chickz. The lease term can be up to 5 years, with two successive 5-year renewal options at fair market rental rates.
This means that when Angry Chickz exercises its purchase option, the franchisee is obligated to provide all necessary documentation to transfer ownership of the business assets and potentially the location's lease or property to Angry Chickz. The franchisee bears the responsibility for ensuring the assets are free of any encumbrances and for covering all associated taxes. This clause protects Angry Chickz by ensuring a smooth transfer of assets and control if they choose to repurchase the franchise.