Where in the Angry Chickz franchise agreement can I find details about the company's right of first refusal?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3 Right of First Refusal.
If Franchisee or any Owner (other than Company, if applicable) desire to cause or permit any Assignment, then Franchisee and/or such Owner shall notify Company in writing, provide such information and documentation describing or relating to the proposed Assignment as Company may require, and grant Company (and its designee) a right of first refusal (the "ROFR") for 60 days following Company's receipt of Franchisee's written notice of the proposed Assignment and copies of all required documentation (the "ROFR Period") to purchase the interest which Franchisee or such Owner proposes to transfer, on the same terms and conditions offered by the third party; provided that Company (and its designee) may substitute cash for any non-cash consideration in an amount determined by Company (or designee as applicable), reasonably and in good faith, as the approximate equivalent value of the non-cash consideration.
Franchisee shall comply with each of its obligations under this Agreement during the ROFR Period, and Company (and its designee) shall have the right, but not the obligation, to offset any payment due to Franchisee on account of any default hereunder by Franchisee.
Notwithstanding the terms and conditions offered by the third party, Franchisee shall make representations and warranties to Company (and its designee) that are customary for transactions
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, details regarding the company's right of first refusal (ROFR) are found in Article 13.3 of the franchise agreement. This section outlines the procedures that Angry Chickz franchisees or owners must follow if they wish to transfer their ownership interest to a third party.
Specifically, if a franchisee or owner intends to facilitate an assignment, they are obligated to provide written notice to Angry Chickz. This notice must include comprehensive information and documentation about the proposed assignment, as required by Angry Chickz. Following receipt of this notice and documentation, Angry Chickz has a 60-day period (the ROFR Period) to exercise its right of first refusal. During this period, Angry Chickz has the option to purchase the interest that the franchisee or owner intends to transfer, matching the terms and conditions offered by the third party.
The franchise agreement also specifies that Angry Chickz can substitute cash for any non-cash consideration proposed by the third party, determining the equivalent cash value reasonably and in good faith. Furthermore, the franchisee must continue to fulfill all obligations under the franchise agreement during the ROFR Period. Angry Chickz retains the right to offset any payments due to the franchisee against any defaults by the franchisee. The franchisee is also required to provide customary representations and warranties to Angry Chickz, regardless of the terms offered by the third party.