What is the maximum the Angry Chickz Brand Fee can be increased to?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3 Brand Fee.
Franchisee shall pay to Company a Brand Fee (the "Brand Fee") of 2% of Franchisee's Gross Sales during the preceding Accounting Period; provided, however, that (i) upon no less than 90 days' prior written notice to Franchisee, Company may increase Franchisee's Brand Fee by up to 0.5% per year (e.g., from 2% to 2.5%) (and thereafter may reduce the same); and (ii) the Brand Fee may not exceed 4% of Franchisee's Gross Sales.
Company shall contribute the Brand Fee to the brand fund to be administered in the manner provided in Section 8.3 (the "Brand Fund").
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Brand Fee is initially 2% of the franchisee's Gross Sales during the preceding Accounting Period. Angry Chickz has the right to increase this fee, but with certain limitations.
Angry Chickz can increase the Brand Fee by up to 0.5% per year, provided they give the franchisee at least 90 days' prior written notice. For example, the fee could increase from 2% to 2.5% in one year. However, the agreement specifies an absolute ceiling: the Brand Fee may not exceed 4% of the franchisee's Gross Sales under any circumstances.
This means that while Angry Chickz can incrementally raise the Brand Fee, the franchisee can be certain that it will never go above 4%. The Brand Fee is contributed to the brand fund, which is used for advertising, marketing, and promotional activities to benefit the Angry Chickz brand.