factual

What conditions must an assignee meet to whom Chicken Guy may assign the Franchise Agreement?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

The following sentence is added to Section 18:

Chicken Guy will not assign its rights under this Agreement, except to an assignee who in Chicken Guy's good faith and judgment is willing and able to assume Chicken Guy's obligations under this Agreement.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy will not assign its rights under the Franchise Agreement unless the assignee, in Chicken Guy's good faith and judgment, is willing and able to assume Chicken Guy's obligations under the agreement. This condition is part of an addendum required by the state of New York.

For a prospective franchisee, this means that if Chicken Guy decides to assign the Franchise Agreement to another party, that party must demonstrate the willingness and capability to fulfill Chicken Guy's responsibilities as outlined in the agreement. This protects the franchisee by ensuring that the new franchisor is committed to upholding the terms of the franchise agreement.

It is important to note that this specific condition applies to franchise agreements within the state of New York, as indicated by the addendum. Franchisees in other states may have different terms or conditions regarding the assignment of the Franchise Agreement. Prospective franchisees should carefully review the FDD and any state-specific addenda to understand the conditions under which Chicken Guy can assign the agreement and what protections are in place for the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.