Under what condition are transfer fees collectable for an Angry Chickz franchise?
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)
According to the 2025 Angry Chickz Franchise Disclosure Document, a general release must be executed by the franchisee and any guarantors as a condition for the transfer of the franchise agreement or development agreement. This release is also required for the execution of a renewal franchise agreement between the franchisee and Angry Chickz.
This requirement means that if a franchisee wishes to sell their Angry Chickz franchise to another party, or if they are renewing their franchise agreement, they must sign a general release. This release likely involves waiving certain rights or claims against the franchisor, Angry Chickz Franchising LLC.
The inclusion of guarantors in this requirement suggests that if the original franchise agreement involved a guarantor (someone who guaranteed the franchisee's obligations), that guarantor must also sign the release. This ensures that Angry Chickz is protected from potential future claims related to the transferred or renewed franchise. Franchisees should carefully review the terms of the general release with a legal professional to fully understand the implications of signing it before transferring or renewing their franchise agreement.