Does the Angry Chickz Franchise Agreement's definition of 'Assets' include documents and general intangibles covering or relating to furniture, fixtures, equipment, leasehold improvements and machinery?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
documents and instruments; (d) all letters of credit and letter-of-credit rights and all supporting obligations; (e) all deposit accounts; (f) all investment property and financial assets; (g) all inventory and products thereof and documents therefor; (h) all furniture, fixtures, equipment, leasehold improvements and machinery, wherever located and all documents and general intangibles covering or relating thereto; (i) all books and records pertaining to the foregoing, including computer programs, data, certificates, records, circulation lists, subscriber lists, advertiser lists, supplier lists, customer lists, customer and supplier contracts, sales orders, and purchasing records; (j) all software including computer programs and supporting information; (k) all commercial tort claims; (l) all other personal property of Franchisee of any kind used in connection with the Franchised Business; and (m) all proceeds of the foregoing, including proceeds of insurance policies. The terms used in this definition shall have the meanings given them in the California Uniform Commercial Code if defined in such code.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the definition of "Assets" in the Franchise Agreement does include documents and general intangibles covering or relating to furniture, fixtures, equipment, leasehold improvements, and machinery. Specifically, the definition encompasses all personal property and assets owned by the franchisee or in which the franchisee has rights, located at or used in connection with the franchised business.
This definition extends to various categories of assets, including accounts, licenses, permits, contract rights, leasehold interests, telephone numbers, directory listings, websites, email addresses, social media accounts, intellectual property, general intangibles, receivables, and claims. It also covers chattel paper, letters of credit, deposit accounts, investment property, inventory, and products.
Importantly, the definition explicitly includes "all furniture, fixtures, equipment, leasehold improvements and machinery, wherever located and all documents and general intangibles covering or relating thereto." This means that if a franchisee owns or has rights to any of these items used in their Angry Chickz franchise, they are considered assets under the Franchise Agreement. The definition also extends to all books and records pertaining to the aforementioned assets, including computer programs, data, certificates, and various lists, as well as software, commercial tort claims, other personal property used in connection with the franchised business, and proceeds from insurance policies.
For a prospective Angry Chickz franchisee, this comprehensive definition of "Assets" is significant because it clarifies what property and rights are considered part of the franchise's assets. This can be relevant in various situations, such as during a transfer, termination, or renewal of the franchise agreement, or in the event of a sale of the business. Understanding the scope of assets covered by the agreement is crucial for managing and valuing the franchise.