Is the initial fee paid to Angry Chickz refundable, and if so, under what circumstances?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
er the replacement franchise or license agreement;
- (k) that the transferee/assignee agrees to refurbish the Franchised Business as needed (in Company's discretion) to match the then-current Standards;
- (l) that there shall not be any suit, action, or proceeding pending, or to the knowledge of Franchisee any suit, action, or proceeding threatened, again
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the initial franchise fee is generally nonrefundable. However, in the context of transferring a franchise, the document specifies that a franchisee must have paid Angry Chickz a nonrefundable administrative/transfer fee equal to 25% of the then-current initial franchise fee, but not less than $12,500, plus current training fees (but not less than $5,000) and reimbursement of Angry Chickz's costs associated with the transfer/assignment, including attorneys' fees. This implies that under normal circumstances, the initial fee is nonrefundable.
This nonrefundable policy is a fairly standard practice in the franchise industry, as the initial fee covers Angry Chickz's administrative and training costs incurred when setting up a new franchisee. Prospective franchisees should be aware that this fee is forfeited once paid, regardless of whether they ultimately open an Angry Chickz restaurant.
It is important for potential Angry Chickz franchisees to carefully consider their financial situation and business plan before paying the initial franchise fee, as there are limited circumstances in which a refund would be provided. Franchisees should inquire about any specific conditions or situations where a refund might be considered, although the FDD excerpt indicates that the standard policy is nonrefundable.