Are Angry Chickz franchisees required to purchase merchandise from approved suppliers?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Merchandise, Materials, Supplies and Services
You must advertise, sell and serve all and only the products we authorize. You must purchase, and maintain in inventory as needed to meet reasonably anticipated consumer demand, the ingredients, proteins, sides, salads, and beverages and other food items (including ingredients) and other products as specified by us, all which are purchased, prepared, sold and/or manufactured in strict accordance with our recipes, and Standards, including specifications as to ingredients, brand names, preparation and presentation ("Authorized Products").
You may not offer, sell or otherwise distribute from your Restaurant any products or services that we have not specified or approved to be offered or sold from your Restaurant. All products and services must be offered, sold 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.
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 merchandise from approved suppliers. Specifically, franchisees must purchase and maintain in inventory the ingredients, proteins, sides, salads, beverages, and other food items as specified by Angry Chickz. These items, referred to as "Authorized Products," must be purchased, prepared, sold, and/or manufactured in accordance with Angry Chickz's recipes and standards, including specifications as to ingredients, brand names, preparation, and presentation. Franchisees cannot offer or sell any products or services that Angry Chickz has not specified or approved.
Angry Chickz may periodically designate and approve standards and/or suppliers of furniture, fixtures, and equipment (FFE), as well as other products and services, including services, ingredients, merchandise, equipment, uniforms, supplies, forms, Information Systems, and other products, goods, and services. Franchisees must purchase or lease all FFE and other products and services for their restaurant only according to these standards. Franchisees are required to purchase authorized ingredients, products, and services from 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.
Angry Chickz estimates that substantially all expenditures for leases and purchases in establishing the restaurant and substantially all ongoing expenditures during operation will be for goods and services subject to sourcing restrictions. This means that almost all purchases must meet Angry Chickz's standards and specifications and/or be purchased from suppliers that Angry Chickz designates or approves. Angry Chickz reserves the right to inspect suppliers' facilities and products, designate sources that franchisees must use, and refuse requests for any reason, including having an exclusive source for a particular item or service. They may also disapprove a proposed supplier if its approval would disrupt or adversely impact national or regional distribution arrangements. This gives Angry Chickz significant control over the supply chain and product quality, but it also limits the franchisee's autonomy in sourcing products and services.
If a franchisee wishes to purchase products or services from a supplier that Angry Chickz has not yet approved, the franchisee must submit sufficient information, specifications, and samples for Angry Chickz to determine whether the product or service complies with the standards and specifications and whether the proposed supplier meets their criteria. The franchisee may also be required to pay $500 for reinspection of a previously disapproved supplier, plus cover Angry Chickz's out-of-pocket expenses for reviewing the application and inspecting the supplier's facilities.