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Under what condition will Angry Chickz defer the payment of the development fee in California?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

In the State of California, Angry Chickz will defer the payment of the development fee attributed to each Angry Chickz business that Developer agrees to develop under this Agreement until that Angry Chickz business opens for business. Upon the opening of each Angry

Source: Item 23 — RECEIPTS (FDD pages 54–260)

What This Means (2025 FDD)

According to the 2025 Angry Chickz Franchise Disclosure Document, in California, the payment of the development fee is deferred until each Angry Chickz business opens for business. This means that a developer in California who signs an Area Development Agreement with Angry Chickz will not have to pay the development fee for each location until that specific location is open and operating.

This deferral of payment can be a significant benefit for franchisees as it reduces the initial financial burden. Instead of paying the development fee upfront, the franchisee can use those funds for other startup costs such as construction, equipment, and initial marketing expenses. This can improve the franchisee's cash flow during the critical pre-opening phase.

However, it is important to note that the development fee is not waived entirely; it is simply postponed. Once the Angry Chickz location opens, the franchisee will be responsible for paying the development fee. Prospective franchisees should carefully consider this future obligation and ensure they have a plan to meet this financial commitment when the time comes. This deferral policy is specific to California, and other states may have different regulations regarding fee payments.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.