Is the initial franchise fee for Angry Chickz refundable?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category of investment | Amount | Method of Payment | When Due | To Whom Paid | ||
|---|---|---|---|---|---|---|
| Low | High | |||||
| Initial Franchise Fee | $50,000 | $50,000 | Lump Sum | When you sign your Franchise Agreement | Us | |
| Construction and Leasehold Improvements1 | $240,000 | $500,000 | As incurred or per construction contract | Before opening | Approved general contractor | |
| Architectural/ Engineering2 | $7,000 | $20,000 | As incurred | Before opening | Approved architect and engineer | |
| Accountant and | $2,500 | $4,000 | As incurred | As incurred | Your financial | |
| Attorney | and legal advisors | |||||
| Equipment | $80,000 | $214,000 | As incurred | Before opening | Approved suppliers | |
| Furniture & | $50,000 | $140,000 | As incurred | Before opening | Approved | |
| Fixtures1 | suppliers | |||||
| Signage | $17,000 | $65,000 | As incurred | Before opening | Approved suppliers | |
| Opening Inventory, uniforms and Supplies | $36,500 | $63,000 | As incurred | When delivered | Approved suppliers | |
| Category of | Amount | Method of | When Due | To Whom Paid | ||
| investment | Low | High | Payment | |||
| Smallwares | $11,000 | $14,000 | As incurred | Before opening | Approved suppliers | |
| Computer Equipment & Information Systems3 | $9,000 | $20,000 | As incurred | As incurred - must purchase before opening | Approved supplier | |
| Security System | $10,000 | $15,000 | As incurred | Before opening | Approved suppliers | |
| Grand Opening Support Fee & Market Introduction Program | $35,000 | $55,000 | As Incurred | Before Opening | Us, Approved Suppliers | |
| Prepaid Expenses, Licenses and Permits | $3,000 | $7,000 | As incurred | Before opening | Insurance companies, state county and city governments | |
| Wages, Travel and | $15,000 | $50,000 | As incurred | Before opening | Airlines, hotels, | |
| Living Expenses | Restaurants and | |||||
| During Training4 | employees | |||||
| Rescheduling | $0 | $5,000 | Lump Sum | Upon demand | Us | |
| /Training Fee5 | (before opening) | |||||
| Site Review Kits, | $0 | $1,000 | Lump Sum | Upon Demand | Us | |
| Site Visit Costs | ||||||
| Rent / Lease | $15,000 | $40,000 | As incurred | Before opening | Suppliers | |
| Deposit | ||||||
| Insurance and | $2,000 | $5,000 | As incurred | Before opening | Approved | |
| Utility Deposits | suppliers | |||||
| Additional Funds6 | $20,000 | $55,000 | As incurred | Before opening | Approved | |
| – 3 Months | suppliers | |||||
| Total | $603,000 | $1,323,000 | (exclusive of land costs) | Note: Actual costs will vary for each franchisee and each location depending on a number of factors. Payments to us are not refundable. We are not able to represent whether or not amounts that you may pay to third parties are refundable. |
As described in Item 5, if you sign an 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 of $50,000. However, we will credit the development fee against the initial franchise fees (at the rate of $50,000 for the first restaurant and $25,000 for each subsequent restauran
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the initial franchise fee and development fee are generally not refundable. Item 7 states that payments made to Angry Chickz are not refundable. This applies to both the initial franchise fee of $50,000, paid when signing the Franchise Agreement, and the development fee, which ranges from $75,000 to $150,000 depending on the number of restaurants the franchisee commits to opening under the Area Development Agreement.
Specifically, the FDD notes that the development fee is "payable and fully earned upon signing the Area Development Agreement" and "is not refundable, in whole or in part, under any circumstances." This means that once the Area Development Agreement is signed and the fee is paid, the franchisee cannot get a refund, even if they later decide not to open all the committed restaurants. However, the development fee can be credited towards the initial franchise fees for each restaurant at a rate of $50,000 for the first restaurant and $25,000 for each subsequent restaurant.
Prospective Angry Chickz franchisees should be aware of this non-refundable policy and carefully consider their ability to fulfill the development obligations before signing an Area Development Agreement and paying the associated fees. While the initial franchise fee itself is also non-refundable, the crediting of the development fee against these franchise fees provides some potential offset, provided the franchisee successfully opens multiple locations. It is also important to note that Angry Chickz cannot represent whether fees paid to third parties are refundable, so franchisees should check with those vendors directly.