When is the Continuing Royalty fee for an Angry Chickz franchise due?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty | 6% of Gross Sales2 | Payable via electronic fund transfer (“EFT”) on second (2nd) business day after each Accounting Period. | See Note 2 for definition of Gross Sales. |
- (2) "Gross Sales" means the gross selling price of all goods and services sold or provided in or from your Restaurant, including the total of all revenues received or receivable by you as payment, whether in cash, for credit, redemption of gift cards (or the like), or barter or received as donation, or other means of exchange (and, if for credit or barter, whether or not payment is received therefor), on account of any and all goods, merchandise, services or products sold or provided in or from your Restaurant or which are promoted or sold under any of the Marks, whether or not we have authorized such goods or services to be offered and sold, including; (a) delivery and/or catering fees, service charges, and the like (except service charges disclosed as gratuities and actually paid to employees); (b) revenues from sales of any nature or kind whatsoever, derived by you or by any other person or entity from your Restaurant; (c) revenues from sales of all products or services at your Restaurant, whether in compliance or in contravention of the franchise agreement; and (d) the proceeds of any business interruption insurance, after the satisfaction of any applicable deductible (but assuming the full gross revenues achievable by Franchisee). Notwithstanding the foregoing, "Gross Sales" shall: (i) be calculated before reduction of any amounts (whether fees or expenses) from any third-party order or delivery applications, platforms, marketplaces, or the like, and other persons or vendors that may collect funds from a customer and remit a balance to you, unless we specify otherwise; and (ii) exclude the following: (1) sums representing sales taxes collected
directly from customers by you in the operation of your Restaurant, and any sales, value added or other tax, excise or duty charged to customers which is levied or assessed against you by any Federal, state, municipal or local authority, based on sales of specific goods, products, merchandise or services sold or provided at or from your Restaurant, provided that such taxes are actually transmitted to the appropriate governmental authority; (2) tips or gratuities paid to employees; (3) proceeds from isolated sales of furniture, fixtures and equipment (other than inventory); (4) bona fide refunds paid to customers (subject to any limitations in the Manuals); (5) uncollectible amounts, provided that uncollectible amounts cannot exceed 0.5% of Gross Sales in any fiscal year and subsequent collections of such amounts shall be included in Gross Sales when collected; and (6) and the retail price of any gift certificates and vouchers when sold but not yet redeemed.
Currently, it is our policy that we do not collect a Continuing Royalty or Brand Fee on commissions paid to third party marketplaces that we authorize you to use. To that end, to the extent included in "Gross Sales," we will permit you to deduct from "Gross Sales" 100% of the commission fees paid by you to thirdparty marketplace services that we authorize you to use. We may end this policy at any time and will begin to collect Continuing Royalty on such commissions upon 6 months prior notice to you.
Source: Item 6 — OTHER FEES1 (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Continuing Royalty fee, which is 6% of Gross Sales, is payable via electronic fund transfer on the second business day after each Accounting Period. Gross Sales includes the gross selling price of all goods and services sold or provided in or from your Restaurant, including revenues received in cash, credit, gift card redemption, barter, or donation. Gross Sales also includes delivery and catering fees, revenues from all sales at the restaurant, and proceeds from business interruption insurance.
However, Gross Sales excludes sales taxes collected from customers, tips paid to employees, proceeds from isolated sales of furniture, fixtures, and equipment, bona fide refunds paid to customers, uncollectible amounts (up to 0.5% of Gross Sales), and the retail price of gift certificates when sold but not yet redeemed. Currently, Angry Chickz does not collect a Continuing Royalty or Brand Fee on commissions paid to third party marketplaces that they authorize franchisees to use. Franchisees can deduct 100% of these commission fees from Gross Sales, but Angry Chickz may end this policy with 6 months' notice.
This means that as an Angry Chickz franchisee, you must calculate your Gross Sales at the end of each accounting period, factor in any allowable deductions, and remit 6% of that amount to Angry Chickz via electronic fund transfer within two business days. Failing to accurately calculate and promptly pay this royalty could result in late fees or other penalties. It is important to understand what constitutes Gross Sales and what deductions are permitted to ensure accurate royalty payments.