What is the definition of 'Brand Fee' for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3 Brand Fee.
Franchisee shall pay to Company a Brand Fee (the "Brand Fee") of 2% of Franchisee's Gross Sales during the preceding Accounting Period; provided, however, that (i) upon no less than 90 days' prior written notice to Franchisee, Company may increase Franchisee's Brand Fee by up to 0.5% per year (e.g., from 2% to 2.5%) (and thereafter may reduce the same); and (ii) the Brand Fee may not exceed 4% of Franchisee's Gross Sales.
Company shall contribute the Brand Fee to the brand fund to be administered in the manner provided in Section 8.3 (the "Brand Fund").
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Brand Fee is a payment that franchisees must make to Angry Chickz. The Brand Fee is initially set at 2% of the franchisee's Gross Sales during the preceding accounting period. This fee contributes to the Brand Fund, which Angry Chickz uses for advertising, public relations, and promotional campaigns.
Angry Chickz retains the right to increase the Brand Fee, providing at least 90 days' prior written notice to the franchisee. The increase is capped at 0.5% per year. For example, the fee could increase from 2% to 2.5%. However, the Brand Fee cannot exceed 4% of the franchisee's Gross Sales. Angry Chickz also has the option to decrease the Brand Fee after increasing it.
The Brand Fund is administered by Angry Chickz and is used to promote the Angry Chickz brand. Expenditures from the Brand Fund may include creative development, media placement, market research, and other marketing-related activities. Franchisees are generally required to participate in all advertising, marketing, and public relations programs instituted by Angry Chickz through the Brand Fund. Franchisees must submit the Brand Fee, along with the Continuing Royalty and other owed amounts, no later than the second business day after each accounting period, accompanied by a certified statement of Gross Sales.