What is the initial franchise fee for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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Area Development Agreement
When you sign our current form of Area Development Agreement, you must pay us an initial development fee equal to $25,000 multiplied by the number of Angry Chickz Restaurants (excluding the first Restaurant, at a minimum of 2 restaurants) which you must open, plus $50,000 representing the initial franchise fee for your first Franchise Agreement. When we accept the site for each Restaurant, you will sign a separate Franchise Agreement and pay us an initial franchise fee for each required Restaurant. We will credit the development fee against the initial franchise fees (at the rate of $50,000 for the first restaurant and $25,000 each additional Restaurant until the development fee is exhausted).
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, the initial franchise fee is $50,000 for each location. If a franchisee signs an Area Development Agreement, they must pay an initial development fee of $25,000 multiplied by the number of Angry Chickz restaurants they plan to open (excluding the first restaurant, with a minimum of 2 restaurants), plus $50,000 for the initial franchise fee for the first Franchise Agreement.
For franchisees who sign an Area Development Agreement, Angry Chickz will credit the development fee against the initial franchise fees. The credit is applied at a rate of $50,000 for the first restaurant and $25,000 for each additional restaurant until the development fee is exhausted. This means that the initial $50,000 franchise fee for the first location is effectively covered by the development fee.
It is important to note that if a franchisee signed an Area Development Agreement that differs from the current form, the initial franchise fees may be determined in accordance with their specific Area Development Agreement. Franchisees should carefully review their agreement to understand the fee structure that applies to them.
In Illinois, the payment of all initial fees payable under the Franchise Agreement is deferred until Angry Chickz has satisfied its pre-opening obligations to the franchisee and the Angry Chickz business opens to the public. This deferral was imposed by the Illinois Attorney General's Office due to Angry Chickz's financial condition.