For an Angry Chickz franchise, what is the significance of the 'singular individual or collective character' of the franchisee in relation to the agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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. If Company grants its consent, Company may impose any condition, including some or all of the following (any of which may be waived by Company), each of which the parties deem to be reasonable:
(a) that Franchisee provide a detailed description of the price and all material terms and conditions of the proposed Assignment and the identity of the proposed assignee and such other information as Company may reasonably request;
(b) that Franchisee's rights and obligations to occupy such location shall have been assigned to, and assumed by, the transferee, and that any applicable consent to such transfer has been obtained, and all pertinent documentation been delivered to Company for Company's review and acceptance;
(c) that Franchisee's right to receive payments in connection with the Assignment shall be subordinated to Company's rights to receive any outstanding monetary obligations or other outstanding obligations due from Franchisee or transferee under any agreement with Company or any Affiliate, whether arising before or after the Assignment;
(d) that Franchisee provides Company a true and correct list of all Owners having an interest in this Agreement or in Franchisee, the percentage interest of Owner, and a list of all officers and directors, in such form as Company may require;
(e) that Franchisee shall have complied with Section 13.3 and Company shall not have exercised the ROFR;
(f) that Franchisee shall not be in default under the terms of this Agreement (or any other related agreement), all agreements with Company's Affiliates, the Manual(s) or any other obligations owed Company;
(g) that all obligations to third parties in connection with the Franchised Business shall have been satisfied or assumed by the transferee;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the 'singular individual or collective character' of the franchisee is a significant factor that Angry Chickz considers when entering into a franchise agreement. The agreement is made in reliance on the franchisee's character, reputation, skills, attitude, business ability, and financial capacity, or if applicable, its Owners who will actively and substantially participate in the development ownership and operation of the Franchised Business.
This means that Angry Chickz places a high value on the personal and professional attributes of its franchisees and their owners. They want to ensure that the individuals or entities they partner with have the qualities necessary to successfully operate an Angry Chickz franchise. This consideration extends to those who will be actively involved in the business.
Because of this reliance, the franchise agreement includes restrictions on assignment. The franchisee cannot transfer the agreement to another party without Angry Chickz's prior written consent. This is to ensure that any new franchisee also meets Angry Chickz's standards for character, skills, and financial capacity. If Angry Chickz consents to an assignment, they may impose conditions such as requiring a detailed description of the assignment terms, ensuring the transferee assumes the obligations, and subordinating the franchisee's right to payments to Angry Chickz's outstanding monetary obligations.
In essence, Angry Chickz wants to maintain control over who operates its franchises to protect its brand and the integrity of its system. The personal and professional qualities of the franchisee are not just a formality but a critical factor in the franchise relationship.