What representations and warranties is the Angry Chickz franchisee required to provide to the company concerning the Assets?

According to the 2025 Angry Chickz Franchise Disclosure Document, when a franchisee seeks to transfer their interest in the franchise, they must provide representations and warranties to Angry Chickz that are customary for transactions. This requirement is part of the Right of First Refusal (ROFR) process, where Angry Chickz has the first opportunity to purchase the franchisee's interest on the same terms offered by a third party.

Specifically, if a franchisee or any owner (excluding Angry Chickz itself) desires to facilitate any assignment (transfer of ownership), they must first notify Angry Chickz in writing. This notification must include all information and documentation related to the proposed assignment that Angry Chickz may require. Following this notification, Angry Chickz has a 60-day period (the ROFR Period) to exercise its right to purchase the interest on the same terms and conditions offered by the third party.

During this ROFR Period, the franchisee must continue to fulfill all obligations under the Franchise Agreement. Angry Chickz has the right, but not the obligation, to offset any payments due to the franchisee against any defaults by the franchisee. This ensures that Angry Chickz can maintain control over who becomes a franchisee and can ensure a smooth transition if ownership changes.