Can Angry Chickz require franchisees to acquire and incur the costs of obtaining and implementing hardware, software and other components and devices comprising the Information Systems?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Manual(s) respecting the Franchisee's use of the IS Data. Company cannot estimate the future costs of the Information Systems, required hardware, software, or service or support, and although these costs might not be fully amortizable over the time remaining in the Term, Franchisee agrees to acquire and incur the costs of obtaining and implementing the hardware, software and other components and devices comprising the Information Systems (including additions, upgrades, updates and modifications) and all support services, service and maintenance agreements and subscriptions prescribed by Company from time to time. Information Systems may be provided directly by third parties or may be sold, licensed or sublicensed by or through Company or its Affiliates at a one-time or recurring charge, and pursuant to forms of agreement prescribed by Company.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees are responsible for acquiring and bearing the costs of all hardware, software, and related components that make up the Information Systems. This includes the initial setup, as well as any additions, upgrades, updates, and modifications to the system. Franchisees are also responsible for all support services, service and maintenance agreements, and subscriptions mandated by Angry Chickz. These Information Systems may be provided by third parties or by Angry Chickz or its affiliates, potentially involving one-time or recurring charges.
This requirement means that prospective Angry Chickz franchisees need to factor in ongoing technology expenses. The FDD states that Angry Chickz cannot estimate the future costs of these Information Systems, hardware, software, or support. This lack of predictability introduces a financial risk, as franchisees must agree to these costs even if they cannot fully recover them during the franchise term.
Furthermore, Angry Chickz retains the right to modify the standards related to these Information Systems and Proprietary Systems, which may require franchisees to add, update, upgrade, or replace their existing systems at their own expense. Franchisees must implement these changes within a reasonable timeframe after receiving written notice from Angry Chickz. This ongoing investment in technology is a critical aspect of operating an Angry Chickz franchise and should be carefully considered by potential franchisees.