Is Angry Chickz liable for obligations in the Franchise Agreement after a transfer or assignment?

According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz has no liability for performing any obligations contained in the Franchise Agreement after the effective date of a transfer or assignment. This means that once Angry Chickz transfers or assigns the agreement, they are no longer responsible for fulfilling the obligations outlined within it.

This provision protects Angry Chickz in the event of a transfer. After the transfer date, the new entity or owner assumes all responsibilities and obligations under the agreement. This is a common practice in franchising, as it allows the franchisor to transfer its interests without remaining liable for the franchisee's performance or compliance.

For a prospective Angry Chickz franchisee, this clause highlights the importance of understanding the terms of the Franchise Agreement and the implications of a potential transfer or assignment. It is crucial to recognize that Angry Chickz's obligations cease upon transfer, and the franchisee must be prepared to deal with the new entity or owner. Franchisees should seek legal counsel to fully understand their rights and obligations in such a scenario.