What is the procedure following the death or legal incapacity of an Angry Chickz franchisee?
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, the heirs, personal representatives, or conservators (collectively referred to as "Heirs") have options regarding the franchise agreement. Specifically, if the franchisee is an individual, Angry Chickz allows the Heirs up to 6 months to either assume the existing franchise agreement or, at Angry Chickz's discretion, execute the company's then-current form of franchise agreement, provided Angry Chickz is satisfied that the Heirs meet the company's standards. Alternatively, if Angry Chickz is not satisfied with the Heirs, they can allow the Heirs to sell the franchised business to a person approved by Angry Chickz.
If the franchisee is a corporation, limited liability company, or partnership, and an owner or partner owning 20% or more of the equity or voting power dies or becomes legally incapacitated, Angry Chickz allows the Heirs up to 6 months to seek and obtain Angry Chickz's consent to transfer or assign the stock, membership interests, or partnership rights to the Heirs or another person acceptable to Angry Chickz.
However, if within the 6-month period, the Heirs fail to enter into a new franchise agreement or sell the franchised business to an approved person, or fail to receive Angry Chickz's consent to the assignment of equity, the franchise agreement will automatically terminate. This clause ensures that Angry Chickz maintains control over who operates its franchises, even in unforeseen circumstances such as death or incapacity, while providing a reasonable timeframe for the franchisee's family to manage the transition.