What is the Renewal Fee for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty | 6% of Gross Sales2 | Payable via electronic fund transfer (“EFT”) on second (2nd) business day after each Accounting Period. | See Note 2 for definition of Gross Sales. |
| Type of fee | Amount | Due Date | Remarks |
| Transfer / Assignment (Area Development Agreement) | 25% of our then- current initial franchise fee, plus our out of pocket costs associated with the transfer/assignment, including attorneys’ fees | Before transfer | |
| Audit | Cost of audit plus interest3 on the underpayment at the highest rate allowable by law (not to exceed 18%). | Upon demand | You must pay the cost of the audit if the audit shows an under- reporting or under-recording of 2% or more, three times within any 36- month period or 5% or more during any reporting period. |
| Late Fee | Interest of 18% per annum, or the highest interest rate allowable by law, on any unpaid amounts. | Upon demand | Due only if you are late in paying any amounts owed to us. |
| Charges for unpaid checks, drafts or electronic payments | Our costs and expenses arising from the non- payment, including bank fees in the amount of at least $50 and other related fees incurred by us | Upon demand | Payable only if any check, draft, electronic or other payment is unpaid because of insufficient funds or otherwise |
| Renewal Fee | 25% of our then- current initial franchise fee | Upon signing a successor franchise agreement. | Paid in lieu of an initial franchise fee |
Source: Item 6 — OTHER FEES1 (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the renewal fee is 25% of the then-current initial franchise fee. This fee is paid when signing a successor franchise agreement. The renewal fee is paid in lieu of an initial franchise fee, meaning franchisees don't have to pay the full initial franchise fee again.
In practical terms, this means that if a franchisee decides to renew their franchise agreement with Angry Chickz, they will need to pay a renewal fee that is equivalent to 25% of whatever the initial franchise fee is at that time. For example, if the initial franchise fee is $50,000 when the franchisee renews, the renewal fee would be $12,500. This is a fairly standard practice in franchising, as it allows the franchisor to recoup some of the costs associated with granting a new franchise while also providing an incentive for existing franchisees to remain within the system.
It is important to note that the renewal fee is based on the then-current initial franchise fee, which means it could be higher or lower than the initial franchise fee the franchisee paid when they originally signed their franchise agreement. Franchisees should factor this potential change into their long-term financial planning. Also, the renewal fee is due upon signing the successor franchise agreement, so franchisees should be prepared to pay this fee when they decide to renew.