Will the Obligations remain Obligations for the purpose of the Continuing Guaranty, notwithstanding any assignment or transfer by Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, from time to time, without notice to Guarantor, assign or transfer any or all of the Obligations or any interest therein and, notwithstanding any assignment(s) or transfer(s), the Obligations shall be and remain Obligations for the purpose of this Continuing Guaranty.
Each and every immediate and successive assignee or transferee of any of the Obligations or of any interest therein shall, to the extent of such party's interest in the Obligations, be entitled to the benefits of this Continuing Guaranty to the same extent as if such assignee or transferee were Franchisor.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the obligations will remain obligations for the purpose of the Continuing Guaranty, regardless of any assignment or transfer by Angry Chickz. Specifically, Angry Chickz has the right to assign or transfer any or all of the obligations or any interest within them without providing notice to the guarantor.
Furthermore, the document states that each immediate and successive assignee or transferee of any of the obligations or any interest in them will be entitled to the benefits of the Continuing Guaranty to the same extent as Angry Chickz. This ensures that any party to whom Angry Chickz assigns the obligations has the same rights and protections under the guaranty as Angry Chickz itself.
This clause protects Angry Chickz by ensuring that its rights under the Continuing Guaranty remain intact even if the company transfers or assigns its obligations to another party. For a potential franchisee, this means that the obligations under the guaranty will continue to apply, regardless of any changes in ownership or assignment of the franchise agreement by Angry Chickz.