If an Area Development Agreement for Angry Chickz allows development of Restaurants exceeding the development obligation, what initial franchise fee applies to those additional Restaurants?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
If we permit you to develop Restaurants during the term of your Area Development Agreement in excess of your development obligation, the initial franchisee for each of those Restaurants will be the then-current fee.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, if the franchisor permits a developer to open more restaurants than required by the Area Development Agreement, the initial franchise fee for each of those additional restaurants will be the then-current fee. This means that the fee could be different from the initial franchise fee outlined in the original Area Development Agreement.
For a prospective Angry Chickz area developer, this clause introduces an element of uncertainty. While exceeding the development obligation can be a positive outcome, the franchisee needs to be aware that the initial franchise fee for those additional units might be higher than anticipated. This could impact the overall profitability and return on investment for the additional restaurants.
It is important for prospective area developers to discuss this aspect with Angry Chickz during their due diligence. Specifically, they should inquire about how the "then-current fee" is determined, how frequently it changes, and what factors might influence its fluctuation. Understanding these details will allow the franchisee to make informed decisions about expanding beyond their initial development obligations and accurately forecast their potential costs and revenues.