For an Angry Chickz franchise, what condition must be met before initial fees are due?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
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- Payment of all initial fees payable under the Franchise Agreement and/or Area Development Agreement is deferred until Franchisor has satisfied its pre-opening obligations to you under the Franchise Agreement and/or Area Development Agreement and your Angry Chickz business opens to the public. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Illinois law shall apply to and govern the Franchise Agreement and Area Development Agreement.
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- Item 17, Additional Disclosure. The following statements are added to Item 17:
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
- Item 22, Additional Disclosure. The following statement is added to Item 22:
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
By reading this Disclosure Document, you are not agreeing to, acknowledging, or making any representations whatsoever to the Franchisor and its affiliates.
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC FRANCHISE AGREEMENT
(State of Illinois)
[Item 23: RECEIPTS]
- The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a fee deferral condition, which requires that we defer the collection of all initial fees from California franchisees until we have completed all of our pre-opening obligations and you are open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open.
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC FRANCHISE AGREEMENT
(State of California)
| THIS ADDENDUM is entered into as of, 20 between ANGRY | ||
|---|---|---|
| CHICKZ FRANCHISING LLC, a California limited liability company ("Company"), and , a ("Franchisee"), with reference to the | ||
| following: | ||
| The provisions of this Addendum form an integral part of, and are incorporated into, the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to you was made in the State of Virginia; (B) you are a resident of the State of Virginia; | ||
| and/or (C) the franchised business will be located in the State of Virginia. | ||
| 1. | Payment of all initial fees payable under the Area Development Agreement is deferred | |
| until Franchisor has satisfied its pre-opening obligations to you under the Area Development | ||
| Agreement and your first Angry Chickz business opens to the public. | ||
| 2. | No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in | |
| connection with the commencement of the franchise relationship shall have the effect of (i) | ||
| waiving any claims under any applicable state franchise law, including fraud in the inducement, | or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any | |
| document executed in connection with the franchise. | ||
| Except as set forth herein, the Area Development Agreement shall be valid and enforceable | ||
| between the parties in accordance with its terms. | ||
| IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum | ||
| as of the Effective Date identified below. | ||
| "Company" | "Developer" | |
| ANGRY CHICKZ FRANCHISING LLC, | , | |
| a California limited liability company | [ ] an individual [ ] a general partnership; [ ] a limited partnership; | |
| By: | [ ] a limited liability company; | |
| Name: | [ ] a corporation; | |
| Its: | By: | |
| Date of signing: | Name: Its: Date of signing: |
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the payment of initial franchise fees is contingent upon specific pre-opening obligations being met by the franchisor and the opening of the franchisee's Angry Chickz business to the public. This deferral of initial fees is explicitly stated in addenda to the franchise agreement for franchisees in Illinois, California, and Virginia. For Illinois, the Illinois Attorney General's Office imposed this deferral requirement due to Angry Chickz's financial condition. For California, the Commissioner has imposed a fee deferral condition, which requires that Angry Chickz defers the collection of all initial fees from California franchisees until they have completed all of their pre-opening obligations and the franchisee is open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open. For Virginia, payment of all initial fees payable under the Area Development Agreement is deferred until Angry Chickz has satisfied its pre-opening obligations to you under the Area Development Agreement and your first Angry Chickz business opens to the public.
This condition means that a prospective Angry Chickz franchisee in these states will not be required to pay the initial franchise fee until Angry Chickz has fulfilled its obligations to help them get their business ready to open. This includes tasks such as site selection assistance, providing training, and supplying operational manuals. Once Angry Chickz has met these obligations and the franchisee's location is open and ready to serve customers, the initial franchise fee becomes due.
This arrangement can be seen as a benefit for franchisees as it reduces their upfront financial burden and aligns the franchisor's interests with the franchisee's success. It also provides some assurance that Angry Chickz is committed to supporting the franchisee through the initial setup phase. However, franchisees should still carefully review the franchise agreement and disclosure document to fully understand the scope of Angry Chickz's pre-opening obligations and the specific conditions that trigger the payment of the initial franchise fee. Franchisees should also be aware of the reason for the deferral, which in the case of Illinois is due to Angry Chickz's financial condition.