What is the fee for transferring or assigning an Area Development Agreement for an Angry Chickz franchise?
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 l |
Source: Item 6 — OTHER FEES1 (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Angry Chickz 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. These costs include attorney's fees. This fee must be paid before the transfer can take place.
This means that if a franchisee with an Area Development Agreement decides to sell or transfer their rights to another party, they will incur a fee payable to Angry Chickz. The fee is calculated as a percentage of the initial franchise fee at the time of the transfer, not the initial fee paid by the original franchisee. This could potentially be a significant cost, especially if the initial franchise fee has increased since the agreement was originally signed.
In addition to the percentage-based fee, the franchisee is also responsible for covering Angry Chickz's direct expenses related to the transfer, including legal costs. These additional costs can vary depending on the complexity of the transfer and the legal work required. It is important for prospective franchisees to consider these potential transfer fees when evaluating the overall costs and potential resale value of an Angry Chickz Area Development Agreement.