Does Chicken Guy have any restrictions on assigning its contract?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
4. 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 FDD, there are some restrictions regarding the assignment of the franchise agreement, specifically for franchisees in New York. Chicken Guy will not assign its rights under the agreement unless the assignee, in Chicken Guy's good faith and judgment, is willing and able to assume Chicken Guy's obligations.
This condition ensures that if Chicken Guy decides to assign the agreement to another party, that party must be capable of fulfilling the obligations outlined in the original agreement. This protects the franchisee by ensuring the new franchisor is committed and able to support the Chicken Guy franchise system.
This restriction applies specifically to franchise agreements within New York, as indicated by the addendum. Franchisees in other states may have different conditions regarding the assignment of the franchise agreement, so it's important to review the state-specific addenda relevant to your location.