Is the development fee for an Angry Chickz Area Development Agreement refundable?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
arious | | TOTAL | $95,000 - $205,000 | | | | NOTE 1: This fee is payable and fully earned upon signing the Area Development Agreement. This development fee is uniform to all franchises being offered in this state covered by an Area Development Agreement and is not refundable, in whole or in part, under any circumstances. When you sign our current form of Area Development Agreement, you must pay us an initial development fee equal to $25,000 multiplied by the number of Angry Chickz Restaurants (excluding the first Restaurant, at a minimum of 2
restaurants) which you must open, plus $50,000 representing the initial franchise fee for your first Franchise Agreement.
When we accept the site for each Restaurant, you will sign a separate Franchise Agreement and pay us an initial franchise fee of $50,000 for each required Restaurant. We will credit the development fee against the initial franchise fees (at the rate of $50,000 for the first restaurant and $25,000 each additional Resta
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the development fee for an Area Development Agreement is not refundable. The FDD states that this fee is fully earned upon signing the Area Development Agreement and is not refundable, in whole or in part, under any circumstances.
Specifically, the initial development fee is calculated as $25,000 multiplied by the number of Angry Chickz Restaurants (excluding the first Restaurant, at a minimum of 2 restaurants) which you must open, plus $50,000 representing the initial franchise fee for your first Franchise Agreement. This fee structure means that if an area developer commits to opening multiple locations, they will pay a higher development fee upfront.
While the development fee itself is non-refundable, Angry Chickz does credit this fee towards the initial franchise fees for each restaurant as it opens. The credit is applied at a rate of $50,000 for the first restaurant and $25,000 for each additional restaurant until the development fee is exhausted. This arrangement provides some financial benefit to the franchisee as they develop their territory, offsetting the initial investment with future franchise fees. However, if the franchisee fails to open all the committed restaurants, they will not receive a refund of any remaining balance of the development fee.