Under what circumstances will an Angry Chickz franchisee be required to reimburse the company or its affiliates for amounts advanced or paid on the franchisee's behalf?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.8.1 Franchisee shall also pay to Company, its Affiliates and designees, as applicable, promptly when due:
- (a) all amounts advanced by Company or which Company has paid, or which Company has become obligated to pay on behalf of Franchisee for any reason whatsoever;
- (b) the amount of all sales taxes, use taxes, service taxes, personal property taxes, value added taxes, and similar taxes, which may be imposed upon Franchisee, but required to be collected or paid by Company (i) on account of Franchisee's Gross Sales, or (ii) on account of fees collected by Company from Franchisee (but excluding Company's ordinary income taxes). Company, in its discretion, may collect the taxes in the same manner as the Continuing Royalty is collected and promptly pay the tax collections to the appropriate Governmental Authority; provided, however, that unless Company so elects, it shall be Franchisee's responsibility to pay all sales, use or other taxes imposed now or in the future by any Governmental Authorities on fees paid by Franchisee to Company; and
- (c) all amounts due for any reason, including for the purchase of goods, supplies or services relating to the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a franchisee is required to reimburse Angry Chickz or its affiliates under specific circumstances. If Angry Chickz advances any amounts or pays any amounts that they become obligated to pay on behalf of the franchisee for any reason, the franchisee must promptly reimburse Angry Chickz.
Additionally, the franchisee is responsible for paying all sales taxes, use taxes, service taxes, personal property taxes, value-added taxes, and similar taxes. These taxes may be imposed upon the franchisee but required to be collected or paid by Angry Chickz on account of the franchisee's gross sales or fees collected by Angry Chickz from the franchisee. Angry Chickz may choose to collect these taxes in the same manner as the continuing royalty and promptly pay the tax collections to the appropriate governmental authority. However, unless Angry Chickz elects to do so, it remains the franchisee's responsibility to pay all sales, use, or other taxes imposed by any governmental authorities on fees paid by the franchisee to Angry Chickz.
Furthermore, the franchisee must pay all amounts due for any reason, including the purchase of goods, supplies, or services related to the franchised business. This encompasses any expenses incurred by Angry Chickz or its affiliates on behalf of the franchisee for business-related purposes. This ensures that Angry Chickz is not financially burdened by expenses incurred on the franchisee's behalf and maintains a clear financial relationship between the two parties.