factual

Can an Angry Chickz franchisee assign their franchise if they are in default under the franchise agreement?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (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;

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee cannot assign the franchise agreement if they are in default. The FDD specifies that the franchisee must not be in default under the terms of the agreement, any related agreements, agreements with Angry Chickz's affiliates, the manuals, or any other obligations owed to Angry Chickz to be able to assign the franchise agreement.

This condition protects Angry Chickz by ensuring that the franchise is transferred in good standing. It prevents a franchisee who has failed to meet their obligations from passing those problems onto a new owner. For a prospective franchisee, this means maintaining compliance with all aspects of the franchise agreement is crucial if they wish to retain the option of selling or transferring their business in the future.

This requirement is fairly standard in franchising. Franchisors typically want to ensure that any transfer of ownership maintains the integrity and reputation of the brand. By preventing assignment during default, Angry Chickz retains control over who operates a franchise under its name and ensures that the new franchisee is set up for success without inheriting unresolved issues.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.