For an Angry Chickz franchise, when are the Additional Funds due?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
t Agreement – 2 – 5 Angry Chickz Restaurants**
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |---|---|---|---|---| | Development Fee (See Note 1) | $75,000- $150,000 | Lump Sum | At Signing of Area Development Agreement | Franchisor | | Additional Funds | $20,000 - $55,000 | Cash | As Needed | Various | | TOTAL | $95,000 - $205,000 | | | | NOTE 1: This fee is payable and fully earned upon signing the Area Development Agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the additional funds, which range from $20,000 to $55,000, are due 'As needed' according to the Area Development Agreement. For a single franchise, the additional funds are due before opening. These funds are intended to cover expenses during the initial phase of the business.
For an Area Development Agreement, these funds are paid to various entities. For a single franchise, these funds are paid to approved suppliers. The FDD specifies that these funds are intended to cover staff salaries, operating expenses, and Information Systems maintenance and support fees for the first 3 months of operation. The Information Systems maintenance and support fees are approximately $3,000, at $1,000 per month, for third-party computer software and hardware maintenance and license fees.
It is important to note that the estimate of additional funds does not include an owner's salary or draw. Franchisees must also provide security deposits for utilities and rent, and possibly for other items. These 'Additional Funds' are separate from other fees like the Initial Franchise Fee and Construction/Leasehold Improvement costs, each of which has its own payment schedule.