How will Angry Chickz pay the franchisee the purchase price at closing?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.3.4 Company shall pay Franchisee the purchase price (by corporate check, or offset, or a combination, as applicable) at closing of the purchase; the closing shall take place at a time and place designated by Company within ninety (90) calendar days after Franchisee receives Company's notice of exercise of the purchase option; at closing, Franchisee shall deliver to Company an assignment (and other documentation as Company deems appropriate) transferring good and marketable title to the assets selected by Company, free of liens and encumbrances, with all sales and other transfer taxes paid by Franchisee;
- 15.3.5 If Company elects, then the parties shall comply with applicable bulk sales provisions of the commercial code in the state where the Franchised Business is located, and Company shall have the right to delay the closing until such compliance is completed; and
- 15.3.6 At Company's election, as part of the purchase Franchisee shall deliver to Company an assignment of the lease for the Location (or, if assignment is prohibited, a sublease for the full remaining term and on the same terms as Franchisee's lease); if Franchisee owns the Location, Franchisee shall lease the Location to Company pursuant to the terms of a form lease reasonably designated by Company, for a term selected by Company up to 5 years with two successive 5-year renewal options at fair market rental during the initial and renewal terms.
- 15.3.7 Company shall have the unrestricted right to assign its purchase option in this Section 15.3.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, when the company exercises its purchase option, it will pay the franchisee the purchase price at closing. The payment will be made via corporate check, offset, or a combination of both. The closing will occur within 90 calendar days after the franchisee receives Angry Chickz's notice of the purchase option exercise. At closing, the franchisee must provide an assignment and any other necessary documentation to transfer good and marketable title to the assets selected by Angry Chickz, free of any liens or encumbrances. The franchisee is responsible for paying all sales and other transfer taxes.
Angry Chickz has the right to offset any amounts the franchisee owes to them or their affiliates from the purchase price. If Angry Chickz and the franchisee disagree on the fair market value of the assets, they will each appoint an appraiser experienced in used foodservice equipment transactions. If they still cannot agree, Angry Chickz has the option to pay the average of the two appraisals and proceed with the purchase, or cancel the purchase altogether. If Angry Chickz pays the average of the appraisals, the franchisee retains the option to bring a claim in arbitration for any difference between the fair market value determined by the arbitrator and what Angry Chickz has paid for the assets.
Additionally, Angry Chickz can elect to have the franchisee assign the lease for the location to them, or if assignment is not permitted, sublease the location for the full remaining term under the same terms as the franchisee's lease. If the franchisee owns the location, they will lease it to Angry Chickz under the terms of a lease designated by Angry Chickz, for a term of up to 5 years with two successive 5-year renewal options at fair market rental rates. Angry Chickz also retains the unrestricted right to assign its purchase option to another party.