Does Angry Chickz provide any assurance that a franchisee will achieve the same sales as the affiliate-owned stores?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much. Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request.
Except as provided above, we do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Mike LaRue at 15301 Ventura Boulevard, Building B Suite 250, Sherman Oaks, California 91403, (818) 578-4361; the Federal Trade Commission; and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 48–51)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the company does not guarantee that a franchisee will achieve the same sales as its affiliate-owned stores. The FDD includes a disclaimer stating, "Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much." This statement indicates that while the FDD provides financial performance representations based on affiliate-owned stores, a franchisee's individual results may vary.
Angry Chickz provides financial performance representations based on the historical sales data of its affiliate-owned stores. These representations include gross sales information, which is defined as the gross selling price of all goods and services sold at the restaurant, including revenues from various sources such as delivery fees and gift card redemptions. However, gross sales exclude sales taxes, tips, refunds, and uncollectible amounts (up to 0.5% of gross sales). The FDD also specifies that no deductions are made for commissions paid to third-party delivery platforms.
The FDD emphasizes that Angry Chickz does not make any representations about a franchisee's future financial performance, nor does it authorize employees or representatives to do so, unless providing actual records of an existing outlet being purchased. This is a common practice in franchising, as a franchisee's success depends on various factors, including location, management skills, and local market conditions. Prospective franchisees are advised to report any unauthorized financial performance information they receive to Angry Chickz's management, the Federal Trade Commission, and appropriate state regulatory agencies.
Prospective franchisees should carefully review the financial performance representations provided in Item 19 of the FDD and conduct their own independent research and due diligence. This includes analyzing the market potential in their desired location, assessing their own financial capabilities, and seeking advice from experienced franchise professionals. While Angry Chickz provides data on affiliate-owned stores, it is crucial for franchisees to understand that their individual results may differ and there is no guarantee of achieving the same level of success.