In an Angry Chickz franchise assignment, how are the franchisee's rights to receive payments handled in relation to the company's outstanding monetary obligations?

According to Angry Chickz's 2025 Franchise Disclosure Document, if a franchisee seeks to assign their franchise agreement to a new party, Angry Chickz has specific stipulations regarding the franchisee's right to receive payments from the assignment. Specifically, the franchisee's right to receive payments in connection with the assignment is subordinated to Angry Chickz's right to receive any outstanding monetary obligations. This includes any other outstanding obligations due from the franchisee or the transferee under any agreement with Angry Chickz or any of its affiliates, regardless of whether these obligations arose before or after the assignment.

In practical terms, this means that if a franchisee owes Angry Chickz money at the time of the assignment, or if the new franchisee assumes any of the previous franchisee's debts to Angry Chickz, Angry Chickz will be paid first from the proceeds of the assignment. The franchisee will only receive any remaining funds after Angry Chickz has been fully compensated for all outstanding debts and obligations. This provision protects Angry Chickz's financial interests and ensures that any debts owed to them are settled before the franchisee profits from the assignment of the franchise.

This condition is a standard practice in franchising, as it safeguards the franchisor's financial interests and ensures that outstanding debts are prioritized during franchise transfers. Prospective Angry Chickz franchisees should be aware of this provision and understand that any potential profits from assigning their franchise may be used to settle outstanding debts with Angry Chickz before they receive any payment. It is important for franchisees to maintain good financial standing with Angry Chickz to maximize their potential earnings from a franchise assignment.