How much notice will Angry Chickz give before increasing the Brand Fee?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the company may increase the Brand Fee, but they must provide the franchisee with written notice at least 90 days in advance. The Brand Fee is initially set at 2% of the franchisee's Gross Sales during the preceding Accounting Period.
However, Angry Chickz can only increase the Brand Fee by up to 0.5% per year. For example, they could increase it from 2% to 2.5% in one year. The agreement also states that the Brand Fee cannot exceed 4% of the franchisee's Gross Sales. This provides some predictability for the franchisee, as they know the maximum potential Brand Fee they might have to pay.
This Brand Fee is contributed to the brand fund, which Angry Chickz administers. The brand fund is used for marketing and advertising efforts to benefit the entire Angry Chickz system. The notice period allows franchisees time to adjust their financial planning in anticipation of the increased fee.