For an Angry Chickz franchise, when are the initial fees payable under the Franchise Agreement due?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
edgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The name and address of the Franchisor's agent in this state authorized to receive service of process is: Commissioner of Securities, Department of Commerce and Consumer Affairs, Business Registration Division, Securities Compliance Branch, 335 Merchant Street, Room 203, Honolulu, Hawaii 96813.
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
-
- 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.
-
- 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.
-
- Illinois law shall apply to and govern the Franchise Agreement and Area Development Agreement.
-
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the timing of initial fee payments is contingent upon the location of the franchise. For franchisees in Illinois, the payment of all initial fees is deferred until Angry Chickz has met its pre-opening obligations and the franchisee's business is open to the public. This deferral was mandated by the Illinois Attorney General's Office due to Angry Chickz's financial condition. Similarly, for franchisees in California who sign a development agreement, the payment of development and initial fees for each specific unit is deferred until that unit is open for business.
For Virginia franchisees, the payment of all initial fees payable under the Area Development Agreement is deferred until Angry Chickz has satisfied its pre-opening obligations and the franchisee's first business opens to the public. In California, Angry Chickz will defer the payment of the development fee attributed to each Angry Chickz business that the developer agrees to develop under the agreement until that Angry Chickz business opens for business.
This deferral of initial fees could be advantageous for prospective Angry Chickz franchisees as it reduces the upfront financial burden. However, it's important to note that these deferral conditions are specific to franchisees in Illinois, California and Virginia and may not apply in other states. Prospective franchisees should confirm the specific fee payment terms applicable to their location and carefully review the financial condition of Angry Chickz, as the deferral in Illinois was due to the company's financial situation.