What standards does Angry Chickz require of a transferee/assignee, including credit ratings and business qualifications?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) that the transferee/assignee shall have demonstrated to Company's satisfaction that it meets all of Company's then-current Standards for new Restaurant operators or for holders of an interest in a franchise or license, including satisfactory credit ratings, acceptable business qualifications, the ability to obtain or acquire the license(s) and permit(s) necessary for the operation of the Restaurant, and the ability to fully comply with the terms of this Agreement;
(j) that the transferee/assignee shall have agreed, under a written assumption agreement approved by Company, that at closing, the transferee/assignee shall, at Company's option, either (a) assume this Agreement; provided however, that such assumption shall not relieve Franchisee (as transferor/assignor) of any continuing obligations; or (b) execute a replacement franchise or license agreement on the then-current form of franchise agreement used by Company in the State in which the Franchised Business is being operated, provided, however, that the term of the replacement franchise or license agreement shall be, at Company's option, the remaining term of this Agreement, unless Company otherwise agrees; and, at Company's request, the transferor/assignor shall have executed a continuing guaranty in favor of Company of the performance and payment by the transferee/assignee of all obligations and debts to Company and its Affiliates under the replacement franchise or license agreement;
(k) that the transferee/assignee agrees to refurbish the Franchised Business as needed (in Company's discretion) to match the then-current Standards;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must ensure the proposed transferee/assignee meets several standards. The transferee must demonstrate to Angry Chickz's satisfaction that they meet all of the company's then-current standards for new restaurant operators or holders of interest in a franchise.
These standards include satisfactory credit ratings and acceptable business qualifications. Additionally, the transferee must demonstrate the ability to obtain the necessary licenses and permits to operate the restaurant and fully comply with the terms of the Franchise Agreement. This ensures that any new operator is financially stable and capable of running the Angry Chickz franchise according to the company's requirements.
Furthermore, the transferee must agree to a written assumption agreement approved by Angry Chickz. At the company's option, the transferee must either assume the existing Franchise Agreement (without relieving the original franchisee of their continuing obligations) or execute a replacement franchise agreement on the then-current form used by Angry Chickz. The transferee must also agree to refurbish the franchised business as needed, based on Angry Chickz's discretion, to match the then-current standards. These requirements aim to maintain brand consistency and operational quality across all Angry Chickz locations.