Does the Angry Chickz franchise agreement specify that the conditions for assignment are deemed reasonable by the parties?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 specifies that certain conditions imposed by Angry Chickz for the franchisee to assign the agreement are deemed reasonable by both parties.
Specifically, if Angry Chickz consents to the assignment of the franchise agreement, they may impose conditions that the parties agree are reasonable. These conditions can include requiring the franchisee to provide details about the assignment's price, terms, and the assignee's identity. The franchisee must also ensure that their rights to occupy the location are properly assigned to the new party, with all necessary consents and documentation provided to Angry Chickz for review.
Additionally, Angry Chickz can ensure that the franchisee's right to receive payments from the assignment is subordinate to any outstanding obligations owed to Angry Chickz or its affiliates. The franchisee must also provide a correct list of all owners and their percentage interest in the agreement. The franchisee must comply with right of first refusal requirements, not be in default of the agreement, and ensure all obligations to third parties are satisfied or assumed by the transferee. These conditions are in place to protect Angry Chickz's interests and ensure a smooth transition of the franchise to a new operator, if approved.