Under what circumstances does Angry Chickz have the option to purchase the Franchised Business's Assets following termination or expiration of the Franchise Agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
15.3 Company's Purchase Option Following Termination or Expiration.
15.3.1 Following termination or expiration of this Agreement other than due to Company's uncured breach, Company (or Company's assignee, if applicable) shall have the option, exercisable by delivering written notice to Franchisee within sixty (60) calendar days from the date of the termination or expiration, to acquire from Franchisee, any or all of the Franchised Business's Assets (including equipment, fixtures, inventory, products, materials, and supplies) as selected by Company;
15.3.2 Company shall be entitled to receive from Franchisee such representations and warranties satisfactory to Company concerning Franchisee's ownership of the Assets, condition of and title to the Assets, and absence of any liens and encumbrances on the Assets, except as Company in good faith deems acceptable in its judgment;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz has the option to purchase the assets of a franchised business under specific conditions related to the termination or expiration of the Franchise Agreement. Specifically, if the agreement terminates or expires for any reason other than due to Angry Chickz's uncured breach, Angry Chickz has the option to buy some or all of the Franchised Business's Assets.
This option is exercisable by Angry Chickz, or their assignee, within sixty (60) calendar days from the date of termination or expiration. To exercise this option, Angry Chickz must deliver written notice to the franchisee, specifying which assets they wish to acquire. These assets can include equipment, fixtures, inventory, products, materials, and supplies.
Furthermore, Angry Chickz is entitled to receive representations and warranties from the franchisee regarding the ownership, condition, and title of the assets. They also require assurance that there are no liens or encumbrances on the assets, unless Angry Chickz deems such exceptions acceptable. This provision protects Angry Chickz by ensuring they acquire assets with clear title and in acceptable condition, reducing potential liabilities or disputes after the purchase.