When is the Initial Development Fee for an Angry Chickz development agreement due?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
f any document executed in connection with the franchise.
- The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a fee deferral condition, which requires that we defer the collection of all initial fees from California franchisees until we have completed all of our pre-opening obligations and you are open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open.
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC FRANCHISE AGREEMENT
(State of California)
| THIS ADDENDUM is entered into as of, 20 between ANGRY | |
|---|---|
| CHICKZ FRANCHISING LLC, a California limited liability company ("Company"), and , a ("Franchisee"), with reference to the | |
| following: | |
| 1. | Payment of all initial fees payable under the Franchise Agreement is deferred until |
| and Franchisee's Angry Chickz business opens to the public. | Franchisor has satisfied its pre-opening obligations to Franchisee under the Franchise Agreement |
| 2. opens to the public. | Notwithstanding anything to the contrary set forth in the Franchise Agreement, and in particular Section 5.1 thereof, Franchisee shall pay the Initial Franchise Fee to Company when Company has fulfilled its initial obligations to Franchisee and Franchisee's Angry Chickz business |
| 3. | Except as set forth herein, the Franchise Agreement shall be valid and enforceable |
| between the parties in accordance with its terms. | |
| Addendum as of the Effective Date identified below. | IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this |
| "Company" | "Franchisee" |
| ANGRY CHICKZ FRANCHISING LLC, | , |
| a California limited liability company | [ ] an individual [ ] a general partnership; [ ] a limited partnership; |
| By: | [ ] a limited liability company; |
| Name: | [ ] a corporation; |
| Its: | By: |
| Date of signing: | Name: Its: Date of signing: |
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC AREA DEVELOPMENT AGREEMENT
(State of California)
| THIS ADDENDUM is entered into as of, 20 between ANGRY | |
|---|---|
| CHICKZ FRANCHISING LLC, a California limited liability company ("Company"), and , a ("Franchisee"), with reference to the | |
| following: | |
| 1. Chickz business, Developer will pay to Franchisor the development fee. | In the State of California, Angry Chickz will defer the payment of the development fee attributed to each Angry Chickz business that Developer agrees to develop under this Agreement until that Angry Chickz business opens for business. Upon the opening of each Angry |
| 2. | Except as set forth herein, the Area Development Agreement shall be valid and |
| enforceable between the parties in accordance with its terms. | |
| Addendum as of the Effective Date identified below. | IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this |
| "Company" | "Developer" |
| ANGRY CHICKZ FRANCHISING LLC, a California limited liability company | , [ ] an individual [ ] a general partnership; [ ] a limited partnership; |
| By: | [ ] a limited liability company; |
| Name: | [ ] a corporation; |
| Its: | By: |
| Date of signing: | Name: Its: Date of signing: |
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF HAWAII
In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§ 482E, et seq., the Angry Chickz Franchising LLC Franchise Disclosure Document for use in the State of Hawaii is amended to include the following:
**THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the timing of the Initial Development Fee payment is subject to specific conditions and state regulations. In Illinois, Maryland, and Virginia, the payment of initial fees, including those under the Area Development Agreement, is deferred until Angry Chickz has met its pre-opening obligations and the first Angry Chickz business opens to the public. This deferral is notably due to Angry Chickz's financial condition, as mandated by the Illinois Attorney General's Office and the Maryland Securities Commissioner.
In California, Angry Chickz defers the payment of the development fee for each Angry Chickz business under the agreement until that specific business opens. This means that the development fee is paid incrementally as each location is opened, rather than all upfront.
For prospective Angry Chickz franchisees, this deferral of fees can significantly reduce the initial financial burden. Instead of paying the full development fee upfront, franchisees in these states can delay payment until the business is closer to generating revenue. However, it's important to note that these deferral conditions are specific to certain states and are influenced by Angry Chickz's financial standing. Franchisees should confirm the specific terms applicable to their location and development agreement.
It is also important to note that these deferral terms are outlined in addenda to the franchise and area development agreements, which are designed to comply with specific state laws. These addenda also include provisions related to franchisee rights, choice of law, and limitations on waivers, ensuring that franchisees are protected under state franchise laws.