For an Angry Chickz franchise, what is the impact on assignment if the franchisee has violated the Manual(s)?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
identifying the modifications); (b) that Franchisee is not in default under any provision of this Agreement, or if in default, describing the nature thereof in detail; and (c) as to such other matters as Company may reasonably request; and Franchisee agrees that any such statements may be relied upon by Company and any prospective purchaser, assignee or lender of Company.
13.2 Assignment by Franchisee.
- 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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a franchisee's ability to assign their franchise agreement is contingent upon compliance with several conditions. Specifically, if a franchisee has not complied with the Angry Chickz Manual(s), they are considered in default, which directly impacts their ability to assign the franchise to another party.
Angry Chickz requires that to assign a franchise, the franchisee must not be in default under the terms of the Franchise Agreement, any related agreements, agreements with Angry Chickz's affiliates, the Manual(s), or any other obligations owed to Angry Chickz. This means that any violation of the standards, procedures, and rules outlined in the Manual(s) could prevent a franchisee from selling or transferring their franchise to a new owner.
This provision protects Angry Chickz by ensuring that new franchisees take over businesses that are in good standing and operating according to the brand's standards. For a prospective franchisee, this highlights the importance of adhering to all guidelines and requirements set forth in the Manual(s) to maintain the option of selling the franchise in the future. Failing to comply with these standards could not only affect the current operation of the franchise but also its potential resale value and transferability.