Is Angry Chickz considered a fiduciary with respect to the Brand Fund?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing materials may be from an in-house advertising department or national,
regional or local advertising agencies, or other sources. We need not make expenditures that are equivalent or proportionate to your contributions. We need not ensure that any particular franchisee benefits directly or proportionately from fund advertising. The fund is not a trust and we are not a fiduciary.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–33)
What This Means (2025 FDD)
According to the 2025 FDD, Angry Chickz is not considered a fiduciary with respect to the Brand Fund. The FDD explicitly states that the Brand Fund is not a trust and Angry Chickz is not a fiduciary. This means that Angry Chickz does not have the legal responsibilities of a trustee in managing the Brand Fund.
Angry Chickz has broad discretion in how the Brand Fund is used. They are not required to ensure that any particular franchisee benefits directly or proportionately from the fund's advertising. This gives Angry Chickz significant control over the fund's resources and how they are allocated.
Despite not being a fiduciary, Angry Chickz outlines how the Brand Fund may be used, including creative development, media placement, market research, and public relations. While Angry Chickz intends for the fund to be perpetual, they retain the right to terminate it once all the money has been spent on advertising and promotional purposes. Franchisees are required to pay a Brand Fee of up to 4% of their Gross Sales (currently 2%), but other franchisees may contribute at different rates, as determined by Angry Chickz.