Can Angry Chickz require a Proposed Supplier to enter into a trademark license agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
As a further condition of its approval, Company may require a Proposed Supplier to agree in writing: (i) to faithfully comply with Company's specifications and requirements relating to product quality, prices,
consistency, warranty, reliability, financial capability, labor relations, customer relations, frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints), and/or other criteria, (ii) to offer and sell goods or services bearing or using the Marks only to licensees and franchisees of Company and only pursuant to a trademark license agreement in form prescribed by Company, (iii) to provide to Company duplicate purchase invoices for Company's records and inspection purposes and (iv) to otherwise comply with Company's reasonable requests.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz may require a Proposed Supplier to agree in writing to offer and sell goods or services bearing or using the Angry Chickz Marks only to licensees and franchisees of Angry Chickz and only pursuant to a trademark license agreement in a form prescribed by Angry Chickz.
This means that if a franchisee wants to use a supplier that Angry Chickz has not yet approved, Angry Chickz has the right to make certain demands of that supplier as a condition of approval. One of those demands can be that the supplier enter into a trademark license agreement. This protects the Angry Chickz brand by ensuring that only authorized goods and services bearing the Angry Chickz trademarks are sold to franchisees.
This requirement ensures that the quality and consistency of products and services associated with the Angry Chickz brand are maintained, even when sourced from suppliers not directly designated by the company. The franchisee should be aware that they may need to inform potential suppliers of this requirement and ensure their willingness to comply before submitting them for approval.