Can Angry Chickz require a franchisee to pay for orders on a cash-in-advance basis?

According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz or its affiliate has the right to determine the credit terms for a franchisee's orders. This means Angry Chickz can require franchisees to pay for their orders in advance or upon delivery. Specifically, Angry Chickz may require a franchisee to pay for orders on a cash-in-advance or cash-on-delivery basis.

This provision gives Angry Chickz significant control over the payment terms for supplies and products that franchisees need to operate their businesses. For a prospective franchisee, this means they need to be prepared to potentially pay upfront for orders, which could impact their cash flow management. It is important to maintain open communication with Angry Chickz to understand the specific payment terms and conditions that will apply.

This type of payment arrangement is not uncommon in franchising, particularly for new franchisees or those with a less established credit history. However, it's crucial for franchisees to factor this potential requirement into their financial planning and ensure they have sufficient capital to meet these obligations. Franchisees should also inquire about the circumstances under which Angry Chickz might impose such payment terms and whether there are opportunities to establish credit over time.