Under what condition can an Angry Chickz developer assign a Franchise Agreement to a separate entity?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on by | |
|---|---|
| ("Franchisee") and/or | |
| ("Guarantors") as a condition of (1) the | |
| transfer of the ANGRY CHICKZ FRANCHISING LLC Franchise Agreement | dated |
| between ANGRY CHICKZ FRANCHISING LLC ("Angry Chickz") and Franchisee ("Franchise | |
| Agreement") or the ANGRY CHICKZ FRANCHISING LLC | Development Agreement dated |
| between ANGRY CHICKZ and Franchisee ("Development Agreement"); or (2) the | |
| execution of a renewal Franchise Agreement by Franchisee and ANGRY CHICKZ. |
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document, a franchisee and/or their guarantors must execute a general release as a condition of transferring the Franchise Agreement or Development Agreement. This release applies when transferring an existing agreement between Angry Chickz Franchising LLC and the franchisee, or when executing a renewal Franchise Agreement.
In practical terms, this means that if a franchisee wants to sell their Angry Chickz franchise to someone else or renew their agreement, they must sign a document releasing Angry Chickz from certain liabilities. This is a standard practice in franchising, intended to protect the franchisor from potential future claims related to the transferred or renewed franchise.
However, the FDD also includes addenda for specific states like Maryland, which modify this general release. For example, in Maryland, any release required as a condition of assignment or renewal will not apply to liability under the Maryland Franchise Registration and Disclosure Law. This highlights the importance of reviewing state-specific addenda to understand how they might alter the general terms of the franchise agreement. Therefore, prospective Angry Chickz franchisees should carefully review the specific requirements for assignment and transfer in their state to fully understand their obligations and rights.