Does the Angry Chickz FDD disclose any bankruptcies of its executives other than the CEO?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 3, Additional Disclosure*.* The following statement is added to Item 3:
Neither Angry Chickz Franchising LLC, nor any person in Item 2 of the disclosure document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling these persons from membership in this association or exchange.
Source: Item 4 — BANKRUPTCY (FDD page 10)
What This Means (2025 FDD)
The 2025 Angry Chickz FDD includes an addendum for California that addresses Item 3, but it only states that neither Angry Chickz Franchising LLC, nor any person in Item 2 of the disclosure document is subject to any currently effective order of any national securities association or national securities exchange suspending or expelling these persons from membership in this association or exchange. Item 2 lists the business experience of the CEO, CFO, COO, VP of Franchise Development, and VP of Operations.
However, the excerpt does not explicitly state whether any of the listed executives, aside from the CEO, have filed for bankruptcy. Standard franchise disclosure practices typically require franchisors to disclose any prior bankruptcies of key executives to provide transparency to potential franchisees. The absence of this information in the provided excerpts may be a point of concern for prospective franchisees.
Therefore, it is recommended that potential Angry Chickz franchisees directly ask the franchisor about the bankruptcy history of all executives listed in Item 2 to ensure they have a complete understanding of the leadership's financial background. This inquiry should be part of a thorough due diligence process before making any investment decisions.