What is the amount of the initial franchise fee that must be paid to Angry Chickz when signing the franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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Area Development Agreement
When you sign our current form of Area Development Agreement, you must pay us an initial development fee equal to $25,000 multiplied by the number of Angry Chickz Restaurants (excluding the first Restaurant, at a minimum of 2 restaurants) which you must open, plus $50,000 representing the initial franchise fee for your first Franchise Agreement. When we accept the site for each Restaurant, you will sign a separate Franchise Agreement and pay us an initial franchise fee for each required Restaurant. We will credit the development fee against the initial franchise fees (at the rate of $50,000 for the first restaurant and $25,000 each additional Restaurant until the development fee is exhausted). If we permit you to develop Restaurants during the term of your Area Development Agreement in excess of your development obligation, the initial franchisee for each of those Restaurants will be the then-current fee. If you signed a form of Area Development Agreement which differs from our current form, your initial franchise fees may be determined in accordance with your Area Development Agreement. The development fee is fully earned by us when paid, and is not refundable under any circumstances.
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Except as described above, the fees are uniform for franchises currently being offered.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the initial franchise fee is $50,000. If a prospective franchisee signs an Area Development Agreement, they must pay an initial development fee of $25,000 multiplied by the number of Angry Chickz restaurants they plan to open (excluding the first restaurant, with a minimum of 2 restaurants), plus $50,000 representing the initial franchise fee for the first Franchise Agreement.
When Angry Chickz accepts the site for each restaurant, the franchisee will sign a separate Franchise Agreement and pay an initial franchise fee of $50,000 for each required restaurant. However, Angry Chickz will credit the development fee against the initial franchise fees at a rate of $50,000 for the first restaurant and $25,000 for each subsequent restaurant until the development fee is exhausted.
For California franchisees, the payment of the development and initial fees attributable to a specific unit in the development schedule is deferred until that unit is open. This deferral is due to the Department determining that Angry Chickz has not demonstrated adequate capitalization and/or must rely on franchise fees to fund its operations. This condition requires Angry Chickz to defer the collection of all initial fees from California franchisees until they have completed all pre-opening obligations and the franchisee is open for business.