What does 'transfer' by a franchisee include for 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. |
| m. Conditions for franchisor approval of transfer | §§ 13.2 – 13.4 | New franchisee must: (i) qualify; (ii) have the right to occupy the location by assignment or assumption of the lease or purchase of the location; (iii) assume the Franchise Agreement or sign a new Franchise Agreement; (iv) agree to refurbish your Angry Chickz Restaurant; and (v) complete training. The franchisee's rights to receive payments in connection with the transfer must be subordinated to our rights to receive payment and the other obligations to us. (See also "r" below). If the new franchisee is a business entity, all holders of a 20% or greater interest in the new franchisee must sign a guaranty. You must reimburse us for all costs and expenses that we incur in connection with such a transfer, including attorneys' fees. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 39–48)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a 'transfer' by a franchisee includes the transfer of the franchise agreement itself or any change in the ownership of the franchisee if the franchisee is a business entity. This definition is important because any transaction that falls under this definition will be subject to the transfer provisions outlined in the franchise agreement.
Specifically, Angry Chickz requires express written consent for any transfer. To obtain this consent, a franchisee must provide a detailed description of the price and material terms of the transfer, furnish a list of all owners and others with an interest in the franchise agreement, ensure compliance with the right of first refusal (which Angry Chickz must not have exercised), not be in default of the agreement, be current on obligations to third parties, sign a release along with their owners, have no pending or threatened suits or actions related to the Angry Chickz Restaurant, pay the transfer fee, and agree to a non-competition agreement that is acceptable to Angry Chickz and substantially similar to the terms of the Franchise Agreement.
Furthermore, the new franchisee must meet certain conditions to gain approval. They must qualify as a franchisee, secure the right to occupy the location through assignment, assumption of the lease, or purchase of the location, assume the existing Franchise Agreement or sign a new one, agree to refurbish the Angry Chickz Restaurant, and complete the required training. The franchisee's rights to receive payments in connection with the transfer must be subordinated to Angry Chickz's rights to receive payment and other obligations. If the new franchisee is a business entity, all holders of a 20% or greater interest in the new franchisee must sign a guaranty. The transferring franchisee must also reimburse Angry Chickz for all costs and expenses incurred in connection with the transfer, including attorney's fees.