How long do the heirs of a deceased Angry Chickz franchisee have to assume the agreement?
Angry_Chickz Franchise · 2025 FDDAnswer 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, in the event of the death or legal incapacity of a franchisee, their heirs have a limited time to decide whether to assume the franchise agreement. Specifically, the Angry Chickz agreement allows up to 6 months for the heirs, personal representatives, or conservators to make a decision.
Within this 6-month period, the heirs have two options. First, they can assume the existing franchise agreement or execute Angry Chickz's then-current form of franchise agreement, provided that Angry Chickz is satisfied that the heirs meet the company's standards. Alternatively, if the heirs do not meet these standards, they can sell the franchised business to a person approved by Angry Chickz.
If the heirs fail to either enter into a new franchise agreement or sell the business within the 6-month timeframe, the franchise agreement will automatically terminate. This provision ensures that Angry Chickz maintains control over who operates its franchises, even in the event of a franchisee's death or incapacity. It also provides a reasonable period for the heirs to assess their options and decide on the best course of action.