Does the Angry Chickz Brand Fund cover the placement of electronic media advertisements?
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 placement of electronic media advertisements. The FDD specifies that expenditures from the Brand Fund may include the "creative development, production and placement of print and electronic media advertisements". This indicates that the fund is intended to support various forms of advertising, including electronic media.
Angry Chickz maintains control over the Brand Fund, directing its uses and managing the creative aspects, materials, media placement, and allocation. This means that while franchisees contribute to the fund, Angry Chickz decides how the money is spent. The FDD also mentions that media placement may be national, regional, or local, and may include social media, public relations, or promotional campaigns.
For a prospective Angry Chickz franchisee, this means that a portion of their gross sales (up to 4%, but presently 2%) will go towards the Brand Fund, which may be used for electronic media advertising. However, there is no guarantee that any particular franchisee will directly or proportionately benefit from the fund's advertising efforts. Franchisees should also note that Angry Chickz is not obligated to ensure that the expenditures are equivalent or proportionate to the franchisee's contributions, and the fund is not a trust, meaning Angry Chickz is not acting as a fiduciary.