Are Angry Chickz franchisees required to purchase equipment from approved suppliers?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ld and distributed in accordance with the Standards.
We may periodically designate and approve Standards and/or suppliers of furniture, fixtures and equipment ("FFE") and other products and services that we periodically authorize for use at or sale from your Restaurant, including services, ingredients, merchandize, equipment, uniforms, supplies, forms, Information Systems and other products, goods and services. You must purchase or lease all FFE and other products and services for your Restaurant only according to the Standards
You must purchase authorized ingredients, products and services from: (i) us or our affiliates (if they sell or provide the same); (ii) suppliers designated by us; (iii) suppliers approved by us; or (iv) suppliers selected by you and with our prior written approval.
We and our affiliates may derive revenue and profit based on your purchases and leases, including from charging you for products and services that we or our affiliates provide to you. We and our affiliates may be the sole designated supplier of certain goods and services. Our affiliate Angry Chickz Distribution
LLC (which is owned by an officer in Item 2) manufacturers certain proprietary sauces that are sold to franchisees through broadline distributors. Otherwise, neither we nor our affiliates supply any goods or services to franchisees. During calendar year 2024, that affiliate collected $10,500 attributable to sale of proprietary sauces to franchisees. Except as noted, none of our officers own an interest in any supplier to our franchisees.
You will establish the prices charged for goods and services sold by your Restaurant, and will provide information regarding the prices to us as requested.
If you purchase Authorized Products from an affiliate or us, we or they may derive profits from such purchases. We will not be obligated to reveal our trade secrets and/or Standards of any proprietary items to you or any third party.
If you wish to purchase or use any products or services for or at your Restaurant that we have not yet evaluated or purchase any product or service from a person or entity (a "Proposed Supplier") that we have not yet approved (for products and services that we obligate you to purchase only from designated or approved suppliers), you must submit sufficient information, specifications and samples for us to determine whether the product or service complies with the Standards and specifications and the proposed supplier meets our criteria. For each Proposed Supplier, you must first deliver written notice seeking approval, which notice shall: (a) identify the name and address of the Proposed Supplier, (b) contain such information as may be requested by us or required in the Manual(s), bulletins, electronic communications and/or other directives (which may include financial, operational and economic information regarding its business and product), and (c) identify the products and/or services desired to be purchased or obtained through the Proposed Supplier. Upon request, we will furnish to you the general, but not manufacturing specifications for non-proprietary items and services if specifications are not contained in the Manual(s), bulletins, electronic communications and/or other directives. We may request that the Proposed Supplier furnish us, at no cost to us, product samples, specifications and such other information as we may require.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–23)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees are required to purchase or lease furniture, fixtures, and equipment (FFE) and other products and services according to Angry Chickz's standards. This means that Angry Chickz periodically designates and approves standards and/or suppliers for FFE and other products and services, including services, ingredients, merchandise, equipment, uniforms, supplies, forms, Information Systems, and other products, goods, and services.
Franchisees must purchase authorized ingredients, products, and services from one of the following: Angry Chickz or its affiliates (if they sell or provide them), suppliers designated by Angry Chickz, suppliers approved by Angry Chickz, or suppliers selected by the franchisee with Angry Chickz's prior written approval. This gives franchisees some flexibility in choosing suppliers, but ultimately Angry Chickz has the final say.
Angry Chickz estimates that substantially all of a franchisee's expenditures for leases and purchases in establishing their Restaurant and substantially all of their ongoing expenditures during the operation of their Restaurant will be for goods and services which are subject to sourcing restrictions. If a franchisee purchases from unapproved sources in violation of their agreement, Angry Chickz may require them to purchase replacement products from a designated supplier or terminate their franchise agreement.
If a franchisee wishes to purchase products or services from a supplier that Angry Chickz has not yet approved, they must submit information about the proposed supplier for Angry Chickz to determine whether the supplier meets their criteria. For each proposed supplier, the franchisee must provide written notice including the supplier's name and address, information requested by Angry Chickz, and the products or services to be purchased from the supplier. Angry Chickz may disapprove a proposed supplier for any reason, including if the approval would disrupt or adversely impact their national or regional distribution arrangements. The franchisee or the proposed supplier may have to pay Angry Chickz $500 per reinspection, plus out-of-pocket expenses, to review the application and inspect the supplier's facilities and equipment.