Does the Angry Chickz Brand Fund cover the development of loyalty programs?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Expenditures and uses of the fund may include: (a) creative development, production and placement of print and electronic media advertisements, commercials, musical jingles, decals, radio spots, audio advertising, point of purchase materials, direct mail pieces, literature, outdoor advertising, door hangers, and other advertising and promotional materials; (b) creative development, preparation, production and placement of video, audio and written materials and electronic media, including social media campaigns, (c) purchasing artwork and other components for advertising; (d) media placement and buying, including search engine marketing, search engine optimization, and all associated expenses and fees; (e) administering national, regional and multi-regional marketing and advertising programs; (f) market research, marketing studies and customer satisfaction surveys, including the use of secret shoppers; (g) development, production and acquisition of premium items, giveaways, promotions, contests, public relations events, and charitable or nonprofit events; (h) creative development of visual advertisements and marketing materials, including signage, posters, and graphics; (i) recognition and awards events and programs; (j) system recognition events, including periodic national and regional conventions and meetings; (k) website, extranet and/or Intranet development, implementation and maintenance; (l) development, implementation and maintenance of websites, loyalty programs and/or mobile applications, bookings/reservations, and/or related strategies; (m) retention and payment of advertising and promotional agencies and other outside advisors, including retainers and management fees; (n) public relations and community involvement activities and programs; (o) expenditures for activities conducted for the benefit of co-branding, or other arrangements where products and/or services are offered in conjunction with other marks or through alternative channels of distribution; and (p) expenditures with others joint marketing campaigns, jointly developed advertising and other joint programs.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–33)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Brand Fund can be used for the development, implementation, and maintenance of loyalty programs. This means that a portion of the Brand Fund, which franchisees contribute to, may be allocated to create and manage loyalty programs for customers.
The Brand Fund is managed and directed by Angry Chickz, giving them control over the creative concepts, materials, media, placement, and allocation of the fund. While franchisees contribute a Brand Fee of up to 4% (currently 2%) of their Gross Sales, Angry Chickz has the discretion to determine how the funds are spent. Not all franchisees may contribute at the same rate, and Angry Chickz need not ensure that each franchisee benefits directly or proportionately from the fund's advertising.
This arrangement means that while Angry Chickz franchisees contribute to the Brand Fund, they do not have direct control over how the funds are spent. However, the FDD specifies that the Brand Fund can be used for loyalty programs, which could benefit franchisees by increasing customer retention and sales. Franchisees should stay informed about how the Brand Fund is being used and provide feedback to Angry Chickz regarding potential marketing and loyalty initiatives.