Can Angry Chickz designate itself or its affiliates as the sole supplier of certain goods and services?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
selected by you and with our prior written approval.
We and our affiliates may derive revenue and profit based on your purchases and leases, including from charging you for products and services that we or our affiliates provide to you. We and our affiliates may be the sole designated supplier of certain goods and services. Our affiliate Angry Chickz Distribution
LLC (which is owned by an officer in Item 2) manufacturers certain proprietary sauces that are sold to franchisees through broadline distributors. Otherwise, neither we nor our affiliates supply any goods or services to franchisees. During calendar year 2024, that affiliate collected $10,500 attributable to sale of proprietary sauces to franchisees. Except as noted, none of our office
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–23)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz and its affiliates have the right to be the sole designated supplier of certain goods and services. Specifically, Angry Chickz's affiliate, Angry Chickz Distribution LLC, manufactures proprietary sauces that are sold to franchisees through broadline distributors. In 2024, this affiliate collected $10,500 from the sale of these sauces to franchisees.
Angry Chickz may also designate and approve standards and/or suppliers of furniture, fixtures, and equipment (FFE), as well as other products and services for use at or sale from the restaurant. This includes services, ingredients, merchandise, equipment, uniforms, supplies, forms, Information Systems, and other products, goods, and services. Franchisees are required to purchase or lease all FFE and other products and services according to these standards. Franchisees must purchase authorized ingredients, products, and services from Angry Chickz or its affiliates (if they sell or provide them), suppliers designated by Angry Chickz, suppliers approved by Angry Chickz, or suppliers selected by the franchisee with Angry Chickz's prior written approval.
Angry Chickz estimates that substantially all expenditures for leases and purchases in establishing the Restaurant and substantially all of the expenditures on an ongoing basis during the operation of the Restaurant will be for goods and services which are subject to sourcing restrictions. This means that these purchases must meet Angry Chickz's standards and specifications and/or be purchased from suppliers that Angry Chickz designates or approves. Angry Chickz reserves the right to inspect and re-inspect the facilities and products of any suppliers and may designate sources that franchisees must use. They can also refuse a franchisee's requests for any reason, including having already designated an exclusive source for a particular item or service, which might be Angry Chickz or its affiliate.
If a franchisee wishes to use a supplier that Angry Chickz has not yet approved, they must submit information about the proposed supplier for evaluation. Angry Chickz may disapprove a proposed supplier for any reason, including if the approval would disrupt or adversely impact their national or regional distribution arrangements. They may also revoke approval of a supplier at any time. Franchisees may be charged $500 per reinspection of a proposed supplier, plus out-of-pocket expenses. Angry Chickz and its affiliates may collect rebates, allowances, credits, or other consideration from suppliers based on franchisee purchases or sales, and they reserve the right to retain these benefits.