What options do the heirs of an Angry Chickz franchisee have if they don't meet the company's standards?
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 Angry Chickz's 2025 Franchise Disclosure Document, in the event of the death or legal incapacity of a franchisee, their heirs have a few options regarding the franchise agreement. The heirs have up to 6 months to decide whether to assume the existing franchise agreement or, at Angry Chickz's discretion, execute the company's current franchise agreement, provided Angry Chickz is satisfied that the heirs meet the company's standards.
If Angry Chickz is not satisfied that the heirs meet its standards, the heirs are permitted to sell the franchised business to a person approved by Angry Chickz. This provides an alternative for the heirs to realize some value from the franchise even if they cannot operate it themselves. The same conditions apply if an owner holding 20% or more of the equity or voting power of a corporate or limited liability company franchisee dies or becomes incapacitated.
However, if the heirs fail to either enter into a new franchise agreement or sell the franchised business to someone approved by Angry Chickz within the 6-month period, the franchise agreement will automatically terminate. This clause ensures that Angry Chickz maintains control over who operates its franchises and that the business continues to meet its standards, even in unforeseen circumstances such as the death or incapacitation of the original franchisee.