What is the fee for transferring or assigning an Area Development Agreement for Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES1
| 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. |
| Type of fee | Amount | Due Date | Remarks |
| Transfer / Assignment (Area Development Agreement) | 25% of our then- current initial franchise fee, plus our out of pocket costs associated with the transfer/assignment, including attorneys’ fees | Before transfer | |
| Audit | Cost of audit plus interest3 on the underpayment at the highest rate allowable by law (not t |
Source: Item 6 — OTHER FEES1 (FDD pages 11–15)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the fee for transferring or assigning an Area Development Agreement is 25% of the then-current initial franchise fee, plus Angry Chickz's out-of-pocket costs associated with the transfer or assignment, including attorney's fees. This fee is due before the transfer can take place.
This means that if a franchisee with an Area Development Agreement wants to sell or transfer their rights to another party, they will incur a significant cost. The initial franchise fee can vary, so the transfer fee will depend on what the current fee is at the time of the transfer. In addition to the percentage-based fee, the franchisee is also responsible for covering Angry Chickz's expenses, such as legal fees, which can add to the overall cost.
It is important for prospective Angry Chickz franchisees to consider these potential transfer costs when evaluating the Area Development Agreement. Franchisees should inquire about the current initial franchise fee to estimate the potential transfer fee. They should also factor in potential legal and administrative costs associated with the transfer process. Understanding these costs upfront can help franchisees make informed decisions about their long-term investment and exit strategy.