Under the Angry Chickz Continuing Guaranty, are assignees or transferees of the Obligations entitled to the benefits of the Guaranty?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, from time to time, without notice to Guarantor, assign or transfer any or all of the Obligations or any interest therein and, notwithstanding any assignment(s) or transfer(s), the Obligations shall be and remain Obligations for the purpose of this Continuing Guaranty.
Each and every immediate and successive assignee or transferee of any of the Obligations or of any interest therein shall, to the extent of such party's interest in the Obligations, be entitled to the benefits of this Continuing Guaranty to the same extent as if such assignee or transferee were Franchisor.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, assignees or transferees of the obligations are entitled to the benefits of the Continuing Guaranty. Specifically, each immediate and successive assignee or transferee of any of the obligations or any interest in them will, to the extent of their interest in the obligations, be entitled to the benefits of the Continuing Guaranty. This entitlement is to the same extent as if the assignee or transferee were Angry Chickz itself.
This clause ensures that if Angry Chickz assigns or transfers its rights and obligations under the franchise agreement to another party, that party also benefits from the Continuing Guaranty provided by the guarantor. The guarantor cannot claim that the guaranty is invalid simply because the original franchisor has been replaced by an assignee or transferee. This provides security and continuity for Angry Chickz and any future assignees, as the obligations of the guarantor remain in place even if the franchise agreement changes hands.
For a prospective Angry Chickz franchisee, this means that the Continuing Guaranty remains effective even if Angry Chickz sells or transfers the franchise agreement to a new entity. The guarantor's obligations to the new entity are the same as they were to Angry Chickz. This clause protects the interests of Angry Chickz and any future assignees, ensuring that the financial obligations related to the franchise are continuously guaranteed.