Can Angry Chickz charge franchisees up-front and ongoing fees for Proprietary Systems?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3.3 If Company shall designate certain computer software or hardware which is owned or licensed by Company ("Proprietary Systems"), Franchisee shall at Company's request license or sublicense such hardware or software from Company or its designee and enter into a (sub)license agreement on Company's or such designee's then-current form. From time to time, Franchisee shall purchase any upgrades, enhancements or replacements to the Proprietary Systems. Company and its Affiliates may charge Franchisee up-front and ongoing fees for any Proprietary Systems that Company or its Affiliates license to Franchisee. Company may provide to Franchisee, for a fee, such support services relating to the Proprietary Software as Company deems advisable.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz and its Affiliates have the right to charge franchisees both up-front and ongoing fees for any Proprietary Systems that they license to the franchisee. These Proprietary Systems are defined as specific computer software or hardware owned or licensed by Angry Chickz. Additionally, Angry Chickz may provide support services related to the Proprietary Software for a fee, if they deem it advisable.
This means that as a franchisee, you may incur additional costs for the technology and software required to operate your Angry Chickz franchise. These costs can be both initial (up-front) and recurring (ongoing), impacting your overall investment and operational expenses. It is important to factor in these potential technology-related fees when evaluating the financial feasibility of the franchise.
Furthermore, Angry Chickz retains the right to modify the standards related to the Information Systems and Proprietary Systems. This may require franchisees, at their own expense, to add, update, upgrade, or replace their existing systems, including hardware and software. Franchisees must implement these changes within a reasonable timeframe after receiving written notice from Angry Chickz. This highlights the importance of staying updated with the franchisor's technology requirements and budgeting for potential system upgrades or replacements throughout the franchise term.