Are the successors and assigns of the Angry Chickz Company and Franchisee bound by the franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.5 Successors and Assigns; Benefit. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of Company and Franchisee and its or their respective heirs, executors, administrators, successors and assigns, subject to the restrictions on Assignment contained in this Agreement. This Agreement is for the benefit of the parties only, and, except as expressly provided in this Agreement, is not intended to and shall not confer any rights or benefits upon any person who is not a party to this Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement is binding upon and benefits the successors and assigns of both Angry Chickz and the franchisee. This extends to their respective heirs, executors, administrators, successors, and assigns. However, this is subject to certain restrictions on assignment as detailed in the franchise agreement.
This means that if Angry Chickz were to be acquired by another company, that new company would be obligated to uphold the terms of the existing franchise agreements. Similarly, if a franchisee sells their business to a new owner with Angry Chickz's consent, the new owner would also be bound by the original franchise agreement.
It's important for prospective franchisees to carefully review the sections of the franchise agreement that discuss assignment, as these sections will outline the specific conditions and limitations that apply when transferring ownership or control of the franchise. Understanding these provisions is crucial for both the franchisee and any potential successors or assigns to ensure compliance and avoid potential breaches of contract.