What are the terms of the lease assignment or sublease that the Angry Chickz franchisee may be required to provide to the company?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
identifying the modifications); (b) that Franchisee is not in default under any provision of this Agreement, or if in default, describing the nature thereof in detail; and (c) as to such other matters as Company may reasonably request; and Franchisee agrees that any such statements may be relied upon by Company and any prospective purchaser, assignee or lender of Company.
13.2 Assignment by Franchisee.
- 13.2.1 The rights and duties created by this Agreement are personal to Franchisee. This Agreement has been entered into by Company in reliance upon and in consideration of the singular individual or collective character, reputation, skill attitude, business ability, and financial capacity of Franchisee, or if applicable, its Owners who will actively and substantially participate in the development ownership and operation of the Franchised Business. Accordingly, neither Franchisee nor any Owner (other than Company, if applicable) shall cause or permit any Assignment without Company's prior written consent.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the rights and duties within the franchise agreement are personal to the franchisee, and the company has entered into the agreement based on the franchisee's character, reputation, skills, and financial capacity. As such, the franchisee needs to get Angry Chickz's prior written consent for any assignment.
If Angry Chickz grants consent for assignment, it may impose conditions that the franchisee must meet. One such condition is that the franchisee's rights and obligations to occupy the location must be assigned to and assumed by the transferee. Additionally, any applicable consent to the transfer must be obtained, and all pertinent documentation must be delivered to Angry Chickz for their review and acceptance.
This means that if a franchisee wants to sell their Angry Chickz franchise, they must ensure the new owner (transferee) takes over the lease agreement for the restaurant location. The franchisee must also provide Angry Chickz with all the necessary paperwork related to this lease transfer for approval. This protects Angry Chickz by ensuring the new franchisee has a secure location to operate from and that Angry Chickz has reviewed and approved the lease terms.