Must an Angry Chickz franchisee be current on obligations to third parties to transfer?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| assign to us (at our option) all internet web pages, email address, social media listings, domain names and other registrations containing the marks. If applicable, pay liquidated damages. See also "r" below. | ||
| j. Assignment of | § 13.1 | No restriction on our right to assign. |
| contract by | ||
| Franchisor | ||
| k. "Transfer" by | § 13.2.1 | Includes transfer of the agreement or change in ownership of a franchisee which is an entity. |
| franchisee – defined | ||
| Franchisor approval of transfer | § 13.2 | Transfers require our express written consent You must: (i) provide a detailed description of the price and material terms of the transfer/Assignment; (ii) provide us a list of your Owners and others with an interest in the franchise agreement; (iii) have complied with the right of first refusal and we must not have exercised our right of first refusal; (iv) not be in default; (v) be current to your obligations to third parties; (vi) have signed a release and your Owners must have signed a release; (vii) not have any suit or action pending or threatened with respect to your Angry Chickz Restaurant; (viii) pay the Transfer Fee; and (ix) agree to a non-competition agreement accepted to us which agreement is substantially similar to the Franchise Agreement terms. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a franchisee must be current on their obligations to third parties to transfer their franchise. Specifically, the FDD outlines several requirements a franchisee must meet to obtain Angry Chickz's approval for a transfer.
Among these conditions, the franchisee must provide a detailed description of the price and material terms of the transfer, furnish a list of owners and those with interest in the franchise, ensure Angry Chickz has not exercised its right of first refusal, and not be in default. Additionally, the franchisee needs to be current with obligations to third parties, sign a release along with their owners, and ensure there are no pending or threatened suits or actions related to the Angry Chickz Restaurant.
Furthermore, the franchisee is required to pay a transfer fee and agree to a non-competition agreement that is acceptable to Angry Chickz and substantially similar to the terms of the Franchise Agreement. These stipulations ensure that the transfer process is thorough and protects the interests of Angry Chickz, the existing franchisee, and any potential new franchisee.