Can Angry Chickz waive any of the conditions it imposes on a franchise assignment?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
13.2.1 The rights and duties created by this Agreement are personal to Franchisee. This Agreement has been entered into by Company in reliance upon and in consideration of the singular individual or collective character, reputation, skill attitude, business ability, and financial capacity of Franchisee, or if applicable, its Owners who will actively and substantially participate in the development ownership and operation of the Franchised Business. Accordingly, neither Franchisee nor any Owner (other than Company, if applicable) shall cause or permit any Assignment without Company's prior written consent. If Company grants its consent, Company may impose any condition, including some or all of the following (any of which may be waived by Company), each of which the parties deem to be reasonable:
(a) that Franchisee provide a detailed description of the price and all material terms and conditions of the proposed Assignment and the identity of the proposed assignee and such other information as Company may reasonably request;
(b) that Franchisee's rights and obligations to occupy such location shall have been assigned to, and assumed by, the transferee, and that any applicable consent to such transfer has been obtained, and all pertinent documentation been delivered to Company for Company's review and acceptance;
(c) that Franchisee's right to receive payments in connection with the Assignment shall be subordinated to Company's rights to receive any outstanding monetary obligations or other outstanding obligations due from Franchisee or transferee under any agreement with Company or any Affiliate, whether arising before or after the Assignment;
(d) that Franchisee provides Company a true and correct list of all Owners having an interest in this Agreement or in Franchisee, the percentage interest of Owner, and a list of all officers and directors, in such form as Company may require;
(e) that Franchisee shall have complied with Section 13.3 and Company shall not have exercised the ROFR;
(f) that Franchisee shall not be in default under the terms of this Agreement (or any other related agreement), all agreements with Company's Affiliates, the Manual(s) or any other obligations owed Company;
(g) that all obligations to third parties in connection with the Franchised Business shall have been satisfied or assumed by the transferee;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the company has the discretion to waive conditions it imposes on franchise assignments. Specifically, the franchise agreement outlines several conditions that Angry Chickz may impose when a franchisee seeks to assign their rights and duties under the agreement. These conditions range from providing detailed information about the proposed assignment and assignee to ensuring compliance with existing agreements and satisfaction of obligations.
Angry Chickz retains the flexibility to determine which, if any, of these conditions can be waived. This discretionary power allows Angry Chickz to assess each proposed assignment on a case-by-case basis, considering the specific circumstances and the suitability of the proposed assignee. The FDD states that Angry Chickz deems all of the listed conditions to be reasonable, implying that they are important for protecting the brand and ensuring the continued success of the franchise system.
For a prospective Angry Chickz franchisee, this means that while there are established requirements for assigning a franchise, there is also a possibility for some flexibility. However, it is crucial to understand that Angry Chickz is not obligated to waive any condition, and the decision will likely depend on factors such as the financial strength and operational experience of the proposed assignee, as well as the franchisee's compliance history with Angry Chickz. Franchisees should communicate openly with Angry Chickz and provide all necessary information to support their assignment request.