In an Angry Chickz franchise assignment, can the company require the transferee to pay a transfer fee?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
er the replacement franchise or license agreement;
- (k) that the transferee/assignee agrees to refurbish the Franchised Business as needed (in Company's discretion) to match the then-current Standards;
- (l) that there shall not be any suit, action, or proceeding pending, or to the knowledge of Franchisee any suit, action, or proceeding threatened, again
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if a franchisee seeks to assign their franchise agreement to a new owner, Angry Chickz may require the franchisee to pay a transfer fee. Specifically, the franchisee must pay a nonrefundable administrative/transfer fee equal to 25% of Angry Chickz's then-current initial franchise fee, but not less than $12,500.
In addition to the transfer fee, the franchisee must also cover Angry Chickz's then-current training fees, which will not be less than $5,000. The franchisee is also responsible for reimbursing Angry Chickz's costs associated with the transfer/assignment, including attorneys' fees.
This means that before a transfer can occur, the franchisee must be prepared to pay a significant sum to Angry Chickz, covering not only the transfer fee itself but also training and associated costs. This is a fairly standard practice in franchising, as it compensates the franchisor for the work involved in approving the transfer and training the new franchisee. Prospective franchisees should factor these potential transfer costs into their long-term financial planning.