How much notice will Angry Chickz provide before increasing the Brand Fee?
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 Angry Chickz's 2025 Franchise Disclosure Document, the company will provide at least 90 days' prior written notice before increasing the Brand Fee. The Brand Fee is initially 2% of the franchisee's Gross Sales during the preceding Accounting Period.
Angry Chickz can increase the Brand Fee by up to 0.5% per year. For example, they could increase it from 2% to 2.5%. However, the Brand Fee cannot exceed 4% of the franchisee's Gross Sales. The company also retains the right to decrease the Brand Fee after increasing it.
The Brand Fee contributes to the brand fund, which Angry Chickz administers. This fund is used for marketing and promoting the Angry Chickz brand. Franchisees should be aware of these potential increases and factor them into their financial planning.