Are there release forms required from the franchisee and owners for an Angry Chickz transfer?
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 the 2025 Angry Chickz Franchise Disclosure Document, a franchisee and their owners must sign release forms as part of the transfer process. Specifically, the FDD states that to gain Angry Chickz's approval for a transfer, the franchisee must have signed a release, and their owners must also have signed a release. This requirement is one of several conditions that must be met to obtain Angry Chickz's written consent for the transfer of a franchise agreement.
This stipulation means that when a franchisee seeks to transfer their Angry Chickz franchise to a new owner, both the franchisee and their owners are required to sign documents releasing Angry Chickz from any potential future claims or liabilities related to the franchise up to the point of transfer. This is a common practice in franchising, intended to provide the franchisor with legal protection and clarity during ownership transitions.
The release requirement ensures that Angry Chickz is protected from potential legal issues that might arise from the previous franchisee's operation of the business. It also helps to ensure a clean break and a fresh start for both the new franchisee and the franchisor. The franchisor's interests are further protected by additional transfer requirements, such as the need for the new franchisee to qualify, assume the lease, agree to refurbish the restaurant, and complete training.
Prospective franchisees should carefully review the specific terms and conditions of the release forms with legal counsel to fully understand their implications before agreeing to a transfer. Franchisees should also be aware of the other conditions for transfer, including providing a detailed description of the transfer terms, complying with the right of first refusal, not being in default, and paying a transfer fee.