factual

If an owner of 20% or more of an Angry Chickz franchise dies, how long do the heirs have?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

If Franchisee shall purport to make any Assignment without the prior written consent of Company; provided, however, on condition that the Franchised Business continues to be operated in conformity with this Agreement (a) upon prompt written request and upon the death or legal incapacity of a Franchisee who is an individual, Company shall allow up to 6 months after such death or legal incapacity for the heirs, personal representatives, or conservators (the "Heirs") of Franchisee either (i) assume this Agreement or at Company's discretion, execution Company's then current form of franchise agreement, if Company is subjectively satisfied that the Heirs meet the Standards, or (ii) if not so satisfied, to allow the Heirs to sell the Franchised Business to a person approved by Company, or (b) upon prompt written request and upon the death or legal incapacity of an Owner owning 20% or more of the Equity or voting power of a corporate or limited liability company Franchisee, or a general or limited partner owning 20% or more of any of the Partnership Rights of a Franchisee which is a Partnership, Company shall allow a period of up to 6 months after such death or legal incapacity for the Heirs to seek and obtain Company's consent to the transfer or Assignment of such stock, membership interests or Partnership Rights to the Heirs or to another person acceptable by Company.

If, within said 6 month period, the Heirs fail either to enter into a new franchise agreement or to sell the Franchised Business to a person approved by Company pursuant to this Agreement, or fail either to receive Company's consent to the Assignment of such Equity to the Heirs or to another person acceptable by Company, as provided in this Agreement, this Agreement shall thereupon automatically terminate;

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to the 2025 Angry Chickz Franchise Disclosure Document, if an owner holding 20% or more of the equity or voting power in a corporate or LLC franchisee, or a partner owning 20% or more of the partnership rights in a partnership franchisee, dies or becomes legally incapacitated, their heirs have a period of up to 6 months to take certain actions.

During this 6-month period, the heirs must seek Angry Chickz's consent to transfer or assign the stock, membership interests, or partnership rights to themselves or another party acceptable to Angry Chickz. This implies that the heirs need to promptly notify Angry Chickz of the death or incapacity and formally request the transfer.

If the heirs fail to either enter into a new franchise agreement or sell the franchised business to someone approved by Angry Chickz, or fail to receive Angry Chickz's consent to the assignment of equity within the 6-month timeframe, the franchise agreement will automatically terminate. This highlights the importance of timely communication and action by the heirs to preserve the franchise rights.

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.