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Angry Chickz

Other Restaurants · 2024 FDD

Angry Chickz offers boneless breaded chicken and other quick-service food items in a franchise format. Known for casual dining with multiple restaurant options, it operates in the fast-food industry.

$603,000 – $1,323,000
Total investment
$50,000
Franchise fee
15 yrs
Agreement term

About Angry Chickz

Angry Chickz is an American fast food restaurant chain specializing in hot chicken with various spice levels. It primarily operates in California and also has locations in Arizona, Nevada, and Texas.

Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)

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Angry Chickz franchise FAQ

How much does it cost to open one — the total initial investment?

The total initial investment necessary to begin operation of an Angry Chickz franchise ranges from $603,000 to $1,323,000. This includes a mandatory payment of between $70,000 and $76,000 to the franchisor or its affiliates [p.1].

What is the initial franchise fee?

The initial franchise fee is $50,000 when you sign the franchise agreement. This fee applies to both standard franchises and area development agreements, though it may be credited against a development fee in certain cases [p.16, p.18, p.11].

What are the ongoing royalty and advertising fees?

The ongoing royalty fee is 6% of Franchisee's Gross Sales, subject to certain conditions [p.65]. Advertising and marketing expenses are covered under "Other operating expenses" and include various activities such as media placement, creative development, and market research, with the company in control of fund expenditures [p.194, p.28].

How long is the initial franchise agreement, and can I renew it?

This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or the renewal process beyond stating conditions under which a renewal fee might be applicable [p.65].

Can I sell or transfer my franchise, and what does that require?

According to the FDD, you can generally sell or transfer your franchise only for good cause as determined by the franchisor [p.222]. The franchisor may exercise a right of first refusal to purchase the franchise instead of approving a sale to a third party. Good cause includes but is not limited to specific criteria outlined in the FDD, though these are not detailed here.

On what grounds can the franchisor terminate the agreement?

The franchisor may terminate the agreement on any grounds available by law, as stated on page [p.231].

What financial requirements — net worth and liquid capital — do I need to qualify?

To qualify as a franchisee, you must have sufficient capital and net worth to invest in this opportunity and ensure you can meet all obligations under the agreement [p.118]. Additionally, you will need funds for working capital to pursue your development obligations, though specific amounts depend on the number of restaurants you plan to develop [p.18].

Do I get an exclusive or protected territory?

No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.34, p.35]. However, you will be granted a Protected Area around your Restaurant, typically a 3 Mile radius, which can vary based on factors like demographics and population size [p.35].

What training and ongoing support does the franchisor provide?

The franchisor provides an Initial Training Program that includes classroom training, instruction at company or franchisee facilities, remote training, and self-study. This program lasts approximately 15 days for all attendees and is conducted by various staff members under the supervision of Mariana Sanchez, who has over 8 years of experience in the restaurant industry. The franchisor also reserves the right to require additional training if needed. Ongoing support includes holding training as frequently as deemed necessary, with specific responsibilities for the Operating Principal and Restaurant Leader to complete this training satisfactorily before opening the franchise. [p.72, p.33]

How many franchised outlets are there, and how many have closed or been terminated?

The FDD does not specify the number of franchised outlets. It also states that no franchisees had an outlet terminated, cancelled, not renewed, or otherwise ceased to do business under the franchise agreement during 2024 or who have not communicated with the company within 10 weeks of the date of this disclosure document [p.53].

Does the franchisor share any financial performance or earnings information?

The franchisor may provide financial performance information for existing outlets upon request, but they do not make representations about a franchisee's future financial performance. This information can be shared if there is a reasonable basis and it must be included in the disclosure document [p.48]. Additionally, written substantiation for any financial performance representation will be made available upon reasonable request [p.51].

What am I restricted to selling, and where must I buy supplies?

You are restricted to selling only the products authorized by the franchisor, which includes ingredients, proteins, sides, salads, beverages, and other food items specified by them. You must purchase these items from suppliers designated by the franchisor [p.3]. This may result in higher costs compared to purchasing from other sources [p.3].