What happens if an Angry Chickz franchisee offers services that have not been approved by the franchisor?
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. 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.
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 must only advertise, sell, and serve products that Angry Chickz authorizes. Franchisees must purchase and maintain an inventory of authorized ingredients, proteins, sides, salads, beverages, and other food items, preparing and selling them according to Angry Chickz's recipes and standards. Franchisees are prohibited from offering, selling, or distributing any products or services that Angry Chickz has not specified or approved. All products and services must adhere to Angry Chickz's standards.
Angry Chickz may periodically designate and approve standards and/or suppliers for furniture, fixtures, equipment, and other products and services. Franchisees must purchase or lease all furniture, fixtures, and equipment, and other products and services according to these standards. Franchisees must purchase authorized ingredients, products, and services from Angry Chickz or its affiliates, designated suppliers, approved suppliers, or suppliers selected by the franchisee with Angry Chickz's prior written approval.
If a franchisee wishes to purchase or use any products or services that Angry Chickz has not yet evaluated, or 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 their standards and specifications, and whether the proposed supplier meets their criteria. The franchisee must provide written notice seeking approval, including the supplier's name and address, information requested by Angry Chickz, and the products or services desired from the supplier. Angry Chickz will use good faith efforts to notify the franchisee of their decision within 15 business days after receiving the request and all required information. If written approval is not delivered within 15 business days, the supplier is considered disapproved.
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. They may also revoke approval of a supplier at any time. The franchisee or proposed supplier may be required to pay $500 per reinspection, plus out-of-pocket expenses, for Angry Chickz to review the application and inspect the supplier's facilities and equipment. Failure to comply with these sourcing restrictions could lead to required replacement purchases from designated suppliers or even termination of the franchise agreement.