Must the new Angry Chickz franchisee assume or sign a new Franchise Agreement?
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. |
| m. Conditions for franchisor approval of transfer | §§ 13.2 – 13.4 | New franchisee must: (i) qualify; (ii) have the right to occupy the location by assignment or assumption of the lease or purchase of the location; (iii) assume the Franchise Agreement or sign a new Franchise Agreement; (iv) agree to refurbish your Angry Chickz Restaurant; and (v) complete training. The franchisee's rights to receive payments in connection with the transfer must be subordinated to our rights to receive payment and the other obligations to us. (See also "r" below). If the new franchisee is a business entity, all holders of a 20% or greater interest in the new franchisee must sign a guaranty. You must reimburse us for all costs and expenses that we incur in connection with such a transfer, including attorneys' fees. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a new franchisee may either assume the existing Franchise Agreement or sign a new one when a transfer occurs. Specifically, if a franchisee transfers their Angry Chickz restaurant to a new owner, the new franchisee must meet certain conditions to be approved by Angry Chickz.
Among these conditions, the new franchisee must qualify to become a franchisee, secure the rights to occupy the restaurant location through lease assignment or purchase, and agree to refurbish the Angry Chickz restaurant. Critically, the new franchisee must either assume the existing Franchise Agreement or enter into a new Franchise Agreement with Angry Chickz. Additionally, the new franchisee's rights to receive payments related to the transfer must be subordinated to Angry Chickz's rights to receive payment and other obligations.
Furthermore, if the new franchisee is a business entity, all individuals holding a 20% or greater interest in the entity must sign a guaranty. The transferring franchisee is also responsible for reimbursing Angry Chickz for all costs and expenses incurred during the transfer process, including attorney's fees. This ensures that Angry Chickz maintains control over who operates its franchises and that the brand standards are upheld by the new operator.