factual

What conditions can Angry Chickz require a Proposed Supplier to agree to as a condition of approval?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

As a further condition of its approval, Company may require a Proposed Supplier to agree in writing: (i) to faithfully comply with Company's specifications and requirements relating to product quality, prices,

consistency, warranty, reliability, financial capability, labor relations, customer relations, frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints), and/or other criteria, (ii) to offer and sell goods or services bearing or using the Marks only to licensees and franchisees of Company and only pursuant to a trademark license agreement in form prescribed by Company, (iii) to provide to Company duplicate purchase invoices for Company's records and inspection purposes and (iv) to otherwise comply with Company's reasonable requests. Each Proposed Supplier must agree to comply with Company's usual and customary requirements, including those relating to insurance, indemnification and non-disclosure, and shall demonstrate to the reasonable satisfaction of Company: (a) its ability to provide goods or services, applicable, meeting the Standards; (b) its reliability with respect to delivery and the consistent quality of its products or services; and (c) its ability to meet such other requirements as determined by Company to be in the best interest of the franchise system. Company has the right to inspect the Proposed Supplier's facilities and to require the Proposed Supplier to deliver product samples or items, at Company's option, either directly to Company or to any third party it designates for testing.

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz has the authority to set specific conditions that a Proposed Supplier must agree to in writing before they can be approved. These conditions are designed to ensure that the supplier meets Angry Chickz's standards and protects the integrity of the franchise system.

Specifically, Angry Chickz may require the Proposed Supplier to commit to complying with the company's specifications and requirements related to product quality, prices, consistency, warranty, reliability, financial capability, labor relations, customer relations, frequency of delivery, concentration of purchases, and standards of service, including addressing complaints promptly. The supplier may also be required to sell goods or services bearing Angry Chickz's trademarks only to its licensees and franchisees under a trademark license agreement prescribed by Angry Chickz.

Additionally, Angry Chickz can mandate that the Proposed Supplier provide duplicate purchase invoices for the company's records and inspection purposes and adhere to any other reasonable requests made by Angry Chickz. The Proposed Supplier must also comply with Angry Chickz's standard requirements for insurance, indemnification, and non-disclosure agreements. Furthermore, the supplier must demonstrate its ability to consistently provide goods or services that meet Angry Chickz's standards, maintain reliable delivery, and fulfill any other requirements deemed necessary by Angry Chickz to protect the franchise system's best interests. Angry Chickz retains the right to inspect the supplier's facilities and request product samples for testing, either directly or through a designated third party.

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.