Does the Angry Chickz Franchise Agreement's definition of 'Assets' include receivables?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
"Assets" means all of the following personal property and assets owned by Franchisee or in which Franchisee otherwise has any rights, and located at, or used in connection with the Franchised Business: (a) all accounts, licenses, permits, and contract rights, including this Agreement, leasehold interests, all telephone and telecopier numbers, telephone and other directory listings, websites, email addresses, social media and other electronic accounts, profiles and listings associated with the Franchised Business, intellectual property derived from and created in connection with the Franchised Business (to the extent not assigned to Company), general intangibles, receivables, claims of Franchisee, all guaranties and security therefor and all of Franchisee's right, title and interest in the goods purchased and represented by any of the foregoing; (b) all chattel paper including electronic chattel paper and tangible chattel paper; (c) all
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 receivables. Specifically, the agreement states that 'Assets' include 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 items such as accounts, licenses, permits, contract rights (including the Franchise Agreement itself), leasehold interests, telephone numbers, directory listings, websites, email addresses, social media accounts, intellectual property, general intangibles, and receivables. It also encompasses claims of the franchisee, guaranties and security, and the franchisee's rights in purchased goods represented by the aforementioned items.
For a prospective Angry Chickz franchisee, this means that upon termination or transfer of the franchise, these assets, including any outstanding receivables, are subject to the terms of the Franchise Agreement. It is important for franchisees to understand what constitutes an 'Asset' under the agreement, as it can have significant implications for the valuation and transfer of the franchise business.