Under what circumstances is the development fee for an Angry Chickz Area Development Agreement refundable?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
arious | | TOTAL | $95,000 - $205,000 | | | | NOTE 1: This fee is payable and fully earned upon signing the Area Development Agreement. This development fee is uniform to all franchises being offered in this state covered by an Area Development Agreement and is not refundable, in whole or in part, under any circumstances. When you sign our current form of Area Development Agreement, you must pay us an initial development fee equal to $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.
When we accept the site for each Restaurant, you will sign a separate Franchise Agreement and pay us an initial franchise fee of $50,000 for each required Restaurant. We will credit the development fee against the initial franchise fees (at the rate of $50,000 for the first restaurant and $25,000 each additional Resta
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the development fee for an Area Development Agreement is explicitly non-refundable under any circumstances. The FDD states that once the Area Development Agreement is signed, the development fee is considered fully earned by Angry Chickz. This policy is consistently applied to all franchises offered under an Area Development Agreement within the state.
Specifically, the development fee is calculated as $25,000 multiplied by the number of Angry Chickz restaurants the franchisee commits to open (excluding the first restaurant, with a minimum of two restaurants required), plus $50,000 for the initial franchise fee for the first Franchise Agreement. While the development fee itself is non-refundable, Angry Chickz credits this fee towards the initial franchise fees due for each restaurant as sites are approved and Franchise Agreements are signed. 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 fully utilized.
This non-refundable policy is a critical point for potential Area Developers to consider. It means that regardless of whether the franchisee successfully opens all the agreed-upon restaurants or if unforeseen circumstances prevent further development, the initial development fee will not be returned. Prospective franchisees should carefully evaluate their ability to meet the development schedule and financial obligations before entering into an Area Development Agreement with Angry Chickz, as the initial investment carries a significant risk of loss if the development plans are not fully executed.