Is a transfer fee required to transfer an Angry Chickz franchise?
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)
Yes, according to Angry Chickz's 2025 Franchise Disclosure Document, a transfer fee is required to transfer a franchise. Specifically, Item 17 outlines the conditions for a franchisee to transfer their franchise agreement.
To gain approval for a transfer, the franchisee must fulfill several requirements. These include providing a detailed description of the price and terms of the transfer, supplying a list of owners and those with interest in the franchise, ensuring Angry Chickz has not exercised its right of first refusal, and not being in default. The franchisee must also be current on obligations to third parties, sign a release, ensure there are no pending lawsuits related to the restaurant, agree to a non-competition agreement, and, importantly, pay the transfer fee.
This transfer fee is a standard practice in franchising, intended to cover the franchisor's costs associated with reviewing and approving the transfer, as well as updating documentation and providing support to the new franchisee. Prospective Angry Chickz franchisees should inquire about the specific amount of the transfer fee to factor it into their financial planning should they consider selling their franchise in the future.