Does Angry Chickz require express written consent for transfers?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| assign to us (at our option) all internet web pages, email address, social media listings, domain names and other registrations containing the marks. If applicable, pay liquidated damages. See also "r" below. | ||
| j. Assignment of | § 13.1 | No restriction on our right to assign. |
| contract by | ||
| Franchisor | ||
| k. "Transfer" by | § 13.2.1 | Includes transfer of the agreement or change in ownership of a franchisee which is an entity. |
| franchisee – defined | ||
| Franchisor approval of transfer | § 13.2 | Transfers require our express written consent You must: (i) provide a detailed description of the price and material terms of the transfer/Assignment; (ii) provide us a list of your Owners and others with an interest in the franchise agreement; (iii) have complied with the right of first refusal and we must not have exercised our right of first refusal; (iv) not be in default; (v) be current to your obligations to third parties; (vi) have signed a release and your Owners must have signed a release; (vii) not have any suit or action pending or threatened with respect to your Angry Chickz Restaurant; (viii) pay the Transfer Fee; and (ix) agree to a non-competition agreement accepted to us which agreement is substantially similar to the Franchise Agreement terms. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, transfers of the franchise agreement by the franchisee require the franchisor's express written consent. Specifically, this requirement is detailed in Section 13.2 of the Franchise Agreement. This stipulation is common in franchising, as it allows Angry Chickz to maintain control over who operates their branded locations and ensures that new franchisees meet their standards.
To obtain Angry Chickz's approval for a transfer, a franchisee must fulfill several conditions. These include providing a detailed description of the price and terms of the transfer, supplying a list of all owners and involved parties, ensuring Angry Chickz has not exercised their right of first refusal, and not being in default of the agreement. Additionally, the franchisee must be current on obligations to third parties, sign a release, ensure there are no pending lawsuits related to the restaurant, pay a transfer fee, and agree to a non-competition agreement acceptable to Angry Chickz.
The new franchisee must also meet certain criteria, such as qualifying under Angry Chickz's standards, securing the location through assignment or assumption of the lease, assuming the existing Franchise Agreement or signing a new one, agreeing to refurbish the restaurant, and completing the required training. Furthermore, the rights to receive payments in connection with the transfer must be subordinated to Angry Chickz's rights to receive payment and other obligations. If the new franchisee is a business entity, all holders of a 20% or greater interest must sign a guaranty. The franchisee is also responsible for reimbursing Angry Chickz for all costs and expenses incurred during the transfer process, including attorney's fees.
These conditions ensure that any new franchisee is well-qualified and committed to maintaining the standards of the Angry Chickz brand. The detailed requirements protect Angry Chickz's interests and ensure a smooth transition, while also placing a significant burden on the franchisee looking to transfer their business.