Does Angry Chickz determine the allocation of the Brand Fund?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
8.3.2 Company shall determine, in its discretion, the cost, media, content, format, style, timing, allocation and all other matters relating to such advertising, public relations and promotional campaigns. Franchisee acknowledges that some franchisees or licensees of Company may not be required to contribute, or contribute the same percentage of Gross Sales, to the Brand Fund. Neither Company nor any of its Affiliates are or shall be required to contribute any amount or any minimum amount to the Brand Fund. If Company or any of its Affiliates commence contributing to the Brand Fund, nothing herein shall require Company or any such Affiliate to continue to contribute to the Brand Fund or contribute any amount or at any rate. Nothing in this Agreement shall be construed to require Company or any of its Affiliates to allocate or expend Brand Fund contributions or allocations so as to benefit any particular franchisee, licensee, Franchisee or group of franchisees/licensees on a pro rata or proportional basis or otherwise. Except as directed in writing by Company, Franchisee must participate in all advertising, marketing, promotions, research and public relations programs instituted by Company through the Brand Fund. The Brand Fund shall, as available, provide to Franchisee marketing, advertising and promotional formats and sample materials at the Brand Fund's actual cost of producing such items, plus shipping and handling. Any additional advertising shall be at the sole cost and expense of Franchisee. The materials and/or media created utilizing the Brand Fund may include information regarding acquiring a franchise.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz has the authority to determine how the Brand Fund is spent. Specifically, Angry Chickz decides on the "cost, media, content, format, style, timing, allocation and all other matters" related to advertising, public relations, and promotional campaigns. This gives Angry Chickz significant control over the Brand Fund's resources.
This means that Angry Chickz franchisees do not have direct input on how the Brand Fund is used. While franchisees contribute to the Brand Fund through a percentage of their gross sales, the franchisor ultimately decides where and how those funds are spent. This is a common practice in franchising, where the franchisor manages marketing efforts to maintain brand consistency and maximize impact.
Angry Chickz retains the right to use the Brand Fund for various purposes, including compensating themselves and their affiliates for expenses related to the operation of the marketing/advertising departments and the administration of the Brand Fund. The Brand Fund can also be used to cover legal fees related to claims against Angry Chickz, its affiliates, or the Brand Fund itself. While the Brand Fund will be accounted for separately, Angry Chickz can commingle Brand Fees with general operating funds. Although Angry Chickz is not required to provide franchisees with an accounting of how funds were spent, they will make available an annual unaudited summary of the contributions to, and expenditures of, the Brand Fund for the last year's activity within a reasonable period of time after a franchisee's written request.
For a prospective franchisee, this highlights the importance of understanding the franchisor's marketing strategies and how the Brand Fund is typically utilized. While franchisees contribute to the fund, the ultimate decisions on its allocation rest with Angry Chickz. Franchisees should inquire about the franchisor's historical spending patterns and marketing plans to assess whether the Brand Fund is being used effectively to support the brand and drive business to their locations.