What are 'Suppliers' in the context of an Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Company may request that the Proposed Supplier furnish Company, at no cost to Company, product samples, specifications and such other information as Company may require.
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. Each Proposed Supplier must agree to comply with Company's usual and customary requirements, including those relating to insurance, indemnification and non-disclosure, and shall demonstrate to the reasonable satisfaction of Company: (a) its ability to provide goods or services, applicable, meeting the Standards; (b) its reliability with respect to delivery and the consistent quality of its products or services; and (c) its ability to meet such other requirements as determined by Company to be in the best interest of the franchise system. Company has the right to inspect the Proposed Supplier's facilities and to require the Proposed Supplier to deliver product samples or items, at Company's option, either directly to Company or to any third party it designates for testing. Company reserves the right periodically to inspect and re-inspect the facilities and products of any Suppliers with whom Franchisee may deal, designate sources that Franchisee must use, and/or refuse any of Franchisee's requests for any reason, including that Company has already designated an exclusive source (which might be Company or its affiliate) for a particular item or service or if Company believes that doing so is in the best interests of the Company's franchise network.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a 'Supplier' refers to any entity that provides goods or services to Angry Chickz franchisees. Angry Chickz retains significant control over the supply chain to ensure consistency and quality across all franchise locations.
Angry Chickz may request that potential suppliers provide product samples, specifications, and other information at no cost to the company. As a condition of approval, Angry Chickz may require suppliers to comply with specifications regarding product quality, prices, consistency, warranty, reliability, financial capability, labor relations, customer relations, delivery frequency, purchase concentration, and service standards. Suppliers may also be required to sell goods or services bearing Angry Chickz's trademarks only to licensees and franchisees under a prescribed trademark license agreement, and to provide duplicate purchase invoices for the company's records.
Furthermore, potential suppliers must meet Angry Chickz's requirements related to insurance, indemnification, and non-disclosure. They must demonstrate their ability to provide goods or services that meet the company's standards, their reliability in terms of delivery and consistent quality, and their ability to meet other requirements determined by Angry Chickz. The company reserves the right to inspect the supplier's facilities, require product samples, designate mandatory sources, and refuse franchisee requests for any reason, including the designation of an exclusive source for a particular item or service. This allows Angry Chickz to maintain quality control and protect its brand standards across all franchise locations.
For a prospective Angry Chickz franchisee, this means they may have limited choice in selecting suppliers and must adhere to the company's approved vendor list. This ensures product consistency but may also impact the franchisee's ability to negotiate pricing or source local products. It is important for potential franchisees to understand these supplier restrictions and their implications on operational costs and flexibility.