Does the Angry Chickz franchisee's Brand Fee go into the Brand Fund?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay to Company a Brand Fee (the "Brand Fee") of 2% of Franchisee's Gross Sales during the preceding Accounting Period; provided, however, that (i) upon no less than 90 days' prior written notice to Franchisee, Company may increase Franchisee's Brand Fee by up to 0.5% per year (e.g., from 2% to 2.5%) (and thereafter may reduce the same); and (ii) the Brand Fee may not exceed 4% of Franchisee's Gross Sales.
Company shall contribute the Brand Fee to the brand fund to be administered in the manner provided in Section 8.3 (the "Brand Fund").
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the franchisee's Brand Fee is contributed to the Brand Fund. Specifically, the Brand Fee is 2% of the franchisee's Gross Sales during the preceding Accounting Period. However, Angry Chickz has the right to increase the Brand Fee by up to 0.5% per year with 90 days prior written notice, but the Brand Fee may not exceed 4% of Gross Sales.
The Brand Fund is administered as detailed in Section 8.3 of the franchise agreement. The funds are to be used for advertising, public relations, and promotional campaigns to enhance the image and patronage of Angry Chickz restaurants. These campaigns can be national, regional, or local.
These expenditures may include a wide array of marketing activities, such as creative development for advertisements, media placement, market research, development of promotional items, website maintenance, and retention of advertising agencies. This means that the Brand Fee paid by franchisees is directly intended to support the marketing and promotional efforts of the Angry Chickz brand, which should benefit all franchisees by increasing brand awareness and customer traffic.