In the event of the death of an Angry Chickz franchisee, how long do the heirs have to assume the agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee shall purport to make any Assignment without the prior written consent of Company; provided, however, on condition that the Franchised Business continues to be operated in conformity with this Agreement (a) upon prompt written request and upon the death or legal incapacity of a Franchisee who is an individual, Company shall allow up to 6 months after such death or legal incapacity for the heirs, personal representatives, or conservators (the "Heirs") of Franchisee either (i) assume this Agreement or at Company's discretion, execution Company's then current form of franchise agreement, if Company is subjectively satisfied that the Heirs meet the Standards, or (ii) if not so satisfied, to allow the Heirs to sell the Franchised Business to a person approved by Company, or (b) upon prompt written request and upon the death or legal incapacity of an Owner owning 20% or more of the Equity or voting power of a corporate or limited liability company Franchisee, or a general or limited partner owning 20% or more of any of the Partnership Rights of a Franchisee which is a Partnership, Company shall allow a period of up to 6 months after such death or legal incapacity for the Heirs to seek and obtain Company's consent to the transfer or Assignment of such stock, membership interests or Partnership Rights to the Heirs or to another person acceptable by Company.
If, within said 6 month period, the Heirs fail either to enter into a new franchise agreement or to sell the Franchised Business to a person approved by Company pursuant to this Agreement, or fail either to receive Company's consent to the Assignment of such Equity to the Heirs or to another person acceptable by Company, as provided in this Agreement, this Agreement shall thereupon automatically terminate;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, in the event of the death or legal incapacity of a franchisee, the heirs, personal representatives, or conservators of the franchisee have a period of up to 6 months to either assume the franchise agreement or sell the franchised business. This is contingent upon a prompt written request to Angry Chickz.
Specifically, the heirs can either (i) assume the existing agreement or execute Angry Chickz's then-current form of franchise agreement, provided Angry Chickz is subjectively satisfied that the heirs meet the company's standards, or (ii) if Angry Chickz is not satisfied that the heirs meet the standards, the heirs can sell the franchised business to a person approved by Angry Chickz. If the heirs fail to take either of these actions within the 6-month period, the franchise agreement will automatically terminate.
For franchisees that are corporations, limited liability companies, or partnerships, a similar provision applies if an owner holding 20% or more of the equity or voting power dies or becomes incapacitated. In this case, the heirs have up to 6 months to seek Angry Chickz's consent to transfer the stock, membership interests, or partnership rights to themselves or another person acceptable to Angry Chickz. Failure to secure this consent within the specified timeframe will also result in automatic termination of the franchise agreement.
This clause protects Angry Chickz by ensuring that the franchise continues to be operated according to its standards, even in the event of the franchisee's death or incapacity. It also provides a reasonable timeframe for the franchisee's heirs to decide whether to take over the business or sell it, while maintaining Angry Chickz's control over who operates its franchises.