Under an Area Development Agreement for Angry Chickz, when is the development fee due?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Development Fee (See Note 1) | $75,000- $150,000 | Lump Sum | At Signing of Area Development Agreement | Franchisor |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the development fee is due at the signing of the Area Development Agreement. The development fee ranges from $75,000 to $150,000, payable in a lump sum to the franchisor.
This fee covers the right to develop between two and five Angry Chickz restaurants. It's important to note that this fee is non-refundable under any circumstances, so prospective franchisees should carefully consider their development plans before signing the agreement. The development fee is calculated as $25,000 multiplied by the number of Angry Chickz Restaurants (excluding the first Restaurant, at a minimum of 2 restaurants) which you must open, plus $50,000 representing the initial franchise fee for your first Franchise Agreement.
Angry Chickz will credit the development fee against the initial franchise fees. The credit is applied at a rate of $50,000 for the first restaurant and $25,000 for each additional restaurant until the development fee is exhausted. This means that while the initial outlay is significant, it offsets the franchise fees for the initial restaurants developed under the agreement.