Is an Angry Chickz franchisee required to pay for the review of a Proposed Supplier's application?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee or the Proposed Supplier must pay Company in advance (or upon Company's request, reimburse) Company's reasonably anticipated costs to review the Proposed Supplier's application and all current and future reasonable costs and expenses, to inspect and audit the Proposed Suppliers' facilities, equipment, and all product testing costs paid by Company to third parties.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a franchisee is responsible for covering the costs associated with the review of a Proposed Supplier. Specifically, the franchisee or the Proposed Supplier must pay in advance for Angry Chickz's anticipated costs to review the application. This includes expenses related to inspecting the supplier's facilities and equipment, as well as any product testing fees paid to third parties by Angry Chickz.
This requirement means that if a franchisee wants to use a supplier not already approved by Angry Chickz, they will need to factor in these potential review costs. These costs are in addition to the time and effort required to gather and submit the necessary information, specifications, and samples for Angry Chickz to evaluate the Proposed Supplier. The FDD specifies that the information needed for the application includes the supplier's name and address, and any financial, operational, and economic information regarding its business and product that Angry Chickz requests.
The financial burden on the franchisee could be significant, especially if multiple suppliers are proposed or if the review process is extensive. It is important for prospective Angry Chickz franchisees to understand this obligation and to discuss potential supplier needs with Angry Chickz during their due diligence. This will help them anticipate and budget for these potential costs.
This requirement is not uncommon in franchising, as franchisors often want to maintain quality control and protect their brand standards by carefully vetting suppliers. By having the franchisee bear the costs, Angry Chickz ensures that it is compensated for its time and resources in conducting these reviews, while also potentially discouraging franchisees from seeking out unapproved suppliers without good reason.