How is the Continuing Royalty fee for Angry Chickz payable?
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 Angry Chickz's 2025 Franchise Disclosure Document, the Continuing Royalty fee is 6% of Gross Sales. This fee is payable via electronic fund transfer, also known as EFT, on the second business day after each Accounting Period. Gross Sales is defined as the gross selling price of all goods and services sold or provided in or from your Restaurant. This includes all revenues received or receivable by you as payment, whether in cash, for credit, redemption of gift cards, or barter or received as donation, or other means of exchange.
Gross Sales also includes delivery and/or catering fees, service charges, revenues from sales of any nature or kind whatsoever derived by you or by any other person or entity from your Restaurant, revenues from sales of all products or services at your Restaurant, whether in compliance or in contravention of the franchise agreement; and the proceeds of any business interruption insurance, after the satisfaction of any applicable deductible (but assuming the full gross revenues achievable by Franchisee).
Notably, Gross Sales are calculated before any reductions for fees or expenses from third-party order or delivery applications, platforms, marketplaces, or similar entities that collect funds from customers and remit a balance to you, unless Angry Chickz specifies otherwise. Excluded from Gross Sales are sums representing sales taxes collected directly from customers and transmitted to the appropriate governmental authority, tips or gratuities paid to employees, proceeds from isolated sales of furniture, fixtures, and equipment (other than inventory), bona fide refunds paid to customers, uncollectible amounts (within certain limits), and the retail price of gift certificates and vouchers 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. To that end, to the extent included in "Gross Sales," Angry Chickz will permit franchisees to deduct from "Gross Sales" 100% of the commission fees paid by you to thirdparty marketplace services that they authorize you to use. However, Angry Chickz may end this policy at any time and will begin to collect Continuing Royalty on such commissions upon 6 months prior notice to you.