Can Angry Chickz require the payment of additional fees for the development of an Excess Restaurant?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Developer May Exceed The Development Obligation.
During the Term, Developer may develop and thereafter construct, equip, open and operate pursuant to individual Franchise Agreements more than the total number of Dine-In Restaurants comprising the total Development Obligation (each an "Excess Restaurant") with Company's prior written consent, which consent may be conditioned on among other things, the payment of additional fees (except as provided below) and/or the execution of an amendment to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a developer may build more restaurants than their initial development obligation, referred to as an "Excess Restaurant." Angry Chickz's written consent is required to develop an Excess Restaurant. This consent may be conditional and include the payment of additional fees.
This means that if a developer wants to expand beyond their original agreement, Angry Chickz has the right to charge extra fees as a condition of approving the additional restaurant. The franchisor can also require an amendment to the existing agreement before allowing the development of an Excess Restaurant.
For a prospective Angry Chickz developer, this highlights the importance of understanding the potential costs associated with expanding beyond the initial development agreement. It would be prudent to discuss with Angry Chickz what these additional fees might entail and under what circumstances they would be applied to avoid unexpected expenses when seeking to develop additional locations.