Can Angry Chickz or its Affiliates be the sole designated supplier of certain goods and services for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
9.2.2 As designated or specified by Company from time to time, Franchisee shall purchase authorized ingredients, products and services from: (i) Company or its Affiliates (if they sell or provide the same); (ii) suppliers designated by Company; (iii) suppliers approved by Company; or (iv) suppliers selected by Franchisee and with Company's prior written approval, which, subject to the other terms in this Section 9.2 ("Suppliers").
Franchisee acknowledges that Company and its Affiliates may be the sole designated supplier of certain goods and services.
If Franchisee desires to purchase or use any ingredients, products or services for or at the Franchised Business that Company has not yet evaluated, or purchase any product or service from a person or Entity (a "Proposed Supplier") that Company has not yet approved (for ingredients, products and services that Company requires Franchisee to purchase only from designated or approved suppliers), Franchisee first agrees to submit sufficient information, specifications and samples for Company to determine whether the ingredient, product or service complies with the Standards and specifications and the proposed supplier meets Company's criteria.
For each Proposed Supplier, Franchisee shall first deliver written notice seeking approval, which notice shall: (a) identify the name and address of the Proposed Supplier, (b) contain such information as may be requested by Company or required in the Manual(s) (which may include financial, operational and economic information regarding its business and product), and (c) identify the products and/or services desired to be purchased or obtained through the Proposed Supplier.
Franchisee or the Proposed Supplier must pay Company in advance (or upon Company's request, reimburse) Company's reasonably anticipated costs to review the Proposed Supplier's application and all current and future reasonable costs and expenses, to inspect and audit the Proposed Suppliers' facilities, equipment, and all product testing costs paid by Company to third parties.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz and its affiliates may be the sole designated supplier of certain goods and services.
Specifically, franchisees must purchase authorized ingredients, products, and services from one of four sources: (i) Angry Chickz or its Affiliates (if they sell or provide the same); (ii) suppliers designated by Angry Chickz; (iii) suppliers approved by Angry Chickz; or (iv) suppliers selected by the franchisee with Angry Chickz's prior written approval.
If a franchisee wants to buy ingredients, products, or services that Angry Chickz hasn't assessed yet, or from a supplier Angry Chickz hasn't approved, the franchisee needs to submit detailed information and samples for Angry Chickz to review. The franchisee or the proposed supplier also has to cover the costs for Angry Chickz to inspect the supplier's facilities and test the products. This ensures that all products and services meet Angry Chickz's standards and specifications, maintaining consistency across all franchise locations.