factual

In the event of an assignment of an Angry Chickz franchise, must the franchisee's rights to occupy the location be assigned to the transferee?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) that Franchisee's rights and obligations to occupy such location shall have been assigned to, and assumed by, the transferee, and that any applicable consent to such transfer has been obtained, and all pertinent documentation been delivered to Company for Company's review and acceptance;

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to Angry Chickz's 2025 Franchise Disclosure Document, if a franchisee seeks to assign their franchise agreement to a new party, the rights and obligations to occupy the restaurant location must be assigned to and assumed by the transferee. This requirement is contingent upon Angry Chickz granting consent for the assignment, which they may condition on several factors.

Specifically, the franchisee must ensure that any necessary consent for the transfer of location rights is obtained and that all relevant documentation is provided to Angry Chickz for their review and acceptance. This ensures that the new franchisee has the legal right to operate the Angry Chickz restaurant at the existing location.

This condition protects Angry Chickz by ensuring that any new franchisee operating at the location has the legal right to be there, maintaining the continuity of the business and upholding the brand's standards. It also allows Angry Chickz to maintain control over the locations where their franchises operate, safeguarding their brand image and operational consistency.

For a prospective Angry Chickz franchisee, this means that if they ever decide to sell their franchise, they must ensure that the transfer includes the rights to the location. This could involve working with the landlord to get the lease assigned or transferred to the new franchisee, and obtaining Angry Chickz's approval for the entire transaction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.