According to the Angry Chickz franchise agreement, what is the royalty rate?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty revenue – Royalty revenues represent royalties earned from each of the franchisees in accordance with the franchise disclosure document and the franchise agreement for use of the Angry Chickz name, menus, processes, and procedures. The royalty rate in the franchise agreement is up to seven percent of the gross sales of each restaurant operated by each franchisee. Royalty fee revenue from franchised restaurants is recognized in the period earned and is payable to the Company weekly or monthly when the sales are reported by the franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the royalty rate is up to 7% of the gross sales for each restaurant operated by the franchisee. This royalty is for the use of the Angry Chickz name, menus, processes, and procedures.
The royalty fee is paid by the franchisee to Angry Chickz weekly or monthly. The payment schedule coincides with when the franchisees report their sales. This means that Angry Chickz collects royalties regularly based on the ongoing performance of each franchise location.
In addition to the royalty fee, Angry Chickz also collects a brand fund fee, which is up to 2% of gross sales. These brand fund revenues are also recognized weekly or monthly. These funds are earmarked for brand development and advertising expenses.
The franchise agreement also states that the initial franchise fee is $50,000 for each location to be opened. This fee is separate from the ongoing royalty and brand fund fees, and is paid upfront for the right to open an Angry Chickz franchise.