factual

For Angry Chickz area developers, when are development fees and initial payments deferred until?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

In consideration of the execution of the Area Development Agreement, ANGRY CHICKZ FRANCHISING LLC and Franchisee agree to amend the Area Development Agreement as follows:

    1. Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.

Source: Item 23 — RECEIPTS (FDD pages 54–260)

What This Means (2025 FDD)

According to Angry Chickz's 2025 Franchise Disclosure Document, the deferral of development fees and initial payments for area developers depends on the state where the franchise is sold. In Maryland, all development fees and initial payments are deferred until the first franchise under the development agreement opens. Similarly, in Virginia, payment of all initial fees payable under the Area Development Agreement is deferred until Angry Chickz has satisfied its pre-opening obligations and the first Angry Chickz business opens to the public.

In Illinois, the payment of all initial fees payable under the Area Development Agreement is deferred until Angry Chickz has satisfied its pre-opening obligations and the first Angry Chickz business opens to the public. This deferral requirement was imposed by the Illinois Attorney General's Office due to Angry Chickz's financial condition.

In California, Angry Chickz defers the payment of the development fee attributed to each Angry Chickz business that the Developer agrees to develop under the Agreement until that Angry Chickz business opens for business. This means that the development fee for each location is deferred individually until that specific location is open.

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.