Does the Angry Chickz franchise agreement specify that the company relies on the individual characteristics of the franchisee when entering into the agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
13.2 Assignment by Franchisee.
13.2.1 The rights and duties created by this Agreement are personal to Franchisee. This Agreement has been entered into by Company in reliance upon and in consideration of the singular individual or collective character, reputation, skill attitude, business ability, and financial capacity of Franchisee, or if applicable, its Owners who will actively and substantially participate in the development ownership and operation of the Franchised Business. Accordingly, neither Franchisee nor any Owner (other than Company, if applicable) shall cause or permit any Assignment without Company's prior written consent. If Company grants its consent, Company may impose any condition, including some or all of the following (any of which may be waived by Company), each of which the parties deem to be reasonable:
(a) that Franchisee provide a detailed description of the price and all material terms and conditions of the proposed Assignment and the identity of the proposed assignee and such other information as Company may reasonably request;
(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;
(c) that Franchisee's right to receive payments in connection with the Assignment shall be subordinated to Company's rights to receive any outstanding monetary obligations or other outstanding obligations due from Franchisee or transferee under any agreement with Company or any Affiliate, whether arising before or after the Assignment;
(d) that Franchisee provides Company a true and correct list of all Owners having an interest in this Agreement or in Franchisee, the percentage interest of Owner, and a list of all officers and directors, in such form as Company may require;
(e) that Franchisee shall have complied with Section 13.3 and Company shall not have exercised the ROFR;
(f) that Franchisee shall not be in default under the terms of this Agreement (or any other related agreement), all agreements with Company's Affiliates, the Manual(s) or any other obligations owed Company;
(g) that all obligations to third parties in connection with the Franchised Business shall have been satisfied or assumed by the transferee;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement explicitly states that Angry Chickz relies on the personal characteristics of the franchisee when entering into the agreement. Specifically, the agreement considers the individual's or entity's character, reputation, skills, attitude, business ability, and financial capacity. This reliance is a key factor in Angry Chickz's decision to grant a franchise.
This provision has significant implications for prospective franchisees. It means that Angry Chickz carefully evaluates potential franchisees based on these qualities, and these factors play a crucial role in whether the franchise is granted. It also affects the franchisee's ability to assign the agreement to someone else.
The franchise agreement states that the rights and duties within the agreement are personal to the franchisee. Therefore, franchisees cannot freely transfer their rights and obligations without Angry Chickz's prior written consent. Even if consent is granted, Angry Chickz may impose conditions on the assignment. This protects Angry Chickz's interests by ensuring that any new franchisee meets their standards and is capable of successfully operating the franchise.
Overall, this clause underscores the importance Angry Chickz places on the capabilities and qualities of its franchisees. It highlights the need for potential franchisees to demonstrate they possess the necessary attributes to meet Angry Chickz's expectations and successfully manage a franchise location.