Under what condition is the payment of all initial fees deferred for an Angry Chickz franchise?

According to the 2025 Angry Chickz Franchise Disclosure Document, the payment of initial franchise fees can be deferred under specific conditions, primarily related to the franchisor's obligations and financial standing in certain states. In Illinois, the payment of all initial fees under the Franchise Agreement and/or Area Development Agreement is deferred until Angry Chickz has fulfilled its pre-opening obligations to the franchisee and the franchisee's Angry Chickz business is open to the public. This requirement was imposed by the Illinois Attorney General's Office due to Angry Chickz's financial condition.

Similarly, for franchises sold in Maryland, the Maryland Securities Commissioner requires a financial assurance due to the franchisor's financial condition. As a result, all initial fees and payments owed by franchisees in Maryland are deferred until Angry Chickz completes its pre-opening obligations under the franchise agreement. Additionally, all development fees and initial payments by area developers in Maryland are deferred until the first franchise under the development agreement opens.

In California, the Department has determined that Angry Chickz has not demonstrated adequate capitalization and/or must rely on franchise fees to fund its operations. Consequently, the Commissioner has imposed a fee deferral condition, requiring Angry Chickz to defer the collection of all initial fees from California franchisees until it has completed all of its pre-opening obligations and the franchisee is open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in the development schedule is deferred until that unit is open.