What do royalty revenues represent for Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty revenue – Royalty revenues represent royalties earned from each of the franchisees in accordance with the franchise disclosure document and the franchise agreement for use of the Angry Chickz name, menus, processes, and procedures. The royalty rate in the franchise agreement is up to seven percent of the gross sales of each restaurant operated by each franchisee. Royalty fee revenue from franchised restaurants is recognized in the period earned and is payable to the Company weekly or monthly when the sales are reported by the franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, royalty revenues are the royalties earned from franchisees for the use of the Angry Chickz name, menus, processes, and procedures. These royalties are collected in accordance with the franchise disclosure document and the franchise agreement.
The royalty rate stipulated in the franchise agreement can be up to seven percent of the gross sales of each restaurant operated by the franchisee. Angry Chickz recognizes this royalty fee revenue in the period it is earned. Franchisees are required to pay these fees weekly or monthly, coinciding with their sales reports.
For a prospective Angry Chickz franchisee, this means that a portion of their gross sales, up to 7%, will be paid to Angry Chickz as a royalty for the continued use of the brand's intellectual property and operational systems. This is a standard practice in franchising, where franchisors collect royalties as a primary source of revenue in exchange for the support and brand recognition they provide.