Angry Chickz Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$95,000 - $1,323,000
Franchise Fee
$25,000
Total US Locations
28
Business Summary
Angry Chickz offers franchises for fast-casual restaurants specializing in boneless, breaded chicken tenders. Angry Chickz also serves fries, mac & cheese, coleslaw, rice, and other approved food, beverages, and novelty items to its customers.
Corporate History
Angry Chickz started its journey with its parent company, Angry Chickz Inc., which began operating restaurants in 2018. Angry Chickz Franchising LLC, the entity offering franchises, was organized in California in June 2023. It commenced offering Angry Chickz franchises in October 2023. By December 31, 2024, there was one franchised Angry Chickz restaurant, alongside 27 company-operated locations under the parent company. Angry Chickz Franchising LLC's primary focus is on selling and supporting these franchises, not on operating its own restaurants. An affiliate, Angry Chickz Distribution LLC, handles the manufacturing of proprietary sauces for the system.
Financial Overview
Investment Range
$95,000 - $1,323,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$406,000
Equipment Costs (High)
$954,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial health of Angry Chickz Franchising LLC raises concerns about its ability to provide services and support to franchisees. The company has a significant accumulated deficit (negative equity) of $888,336 as of December 31, 2024, and reported a net loss of $436,260 for the year ended December 31, 2024. State regulators in California, Illinois, Maryland, and Virginia have determined that Angry Chickz Franchising LLC may not be adequately capitalized and might rely on franchise fees to fund operations. As a result, these states require that initial franchise fees be deferred until the franchisor completes its pre-opening obligations and the franchised business opens. The company's notes state that it relies on its parent company, Angry Chickz, Inc., for financial support during this start-up phase and until it achieves sufficient cash flow.
Financing Details
Angry Chickz does not offer any direct or indirect financing options to its franchisees. Additionally, Angry Chickz does not guarantee any notes, leases, or other financial obligations for its franchisees. Therefore, prospective Angry Chickz franchisees will need to secure all necessary funding, such as loans for the franchise fee, equipment, or working capital, from third-party lenders or other sources on their own.
Performance Metrics
Total US Locations
28
Franchised Units
1
Corporate Units
27
Avg Square Footage
2,750
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Angry Chickz has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. Therefore, Angry Chickz has a clean legal record with no lawsuits or legal disputes to report under this item.
Bankruptcy History
David Mkhitaryan, the Chief Executive Officer and founder of Angry Chickz, filed for personal Chapter 7 Bankruptcy in the US Bankruptcy Court Central District of California (San Fernando Valley) on August 29, 2019. The case was discharged on December 9, 2019. This is the only bankruptcy action disclosed for Angry Chickz or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Angry Chickz franchisees must ensure they have substantially complied with all their obligations throughout the term of their agreement and not have committed three or more material defaults in the preceding 36 months. They must deliver a written notice of their intent to renew between 9 and 12 months before their current term expires. Angry Chickz franchisees will be required to sign a new franchise agreement, which may have materially different terms and conditions from their original contract. They must also complete any necessary remodeling, renovation, or refurbishment of their Angry Chickz restaurant to meet current brand standards, unless their business has already been remodeled within the preceding 5 years. Finally, Angry Chickz franchisees and their owners must sign a general release of any claims against Angry Chickz and its affiliates, and Angry Chickz or their employees, as applicable, must comply with current qualification, training, and certification requirements.
Training & Support Program
Franchisor Assistance
Angry Chickz provides comprehensive support to its franchisees. Before opening, Angry Chickz assists with site review and acceptance, providing basic specifications for restaurant design and layout, along with lists of mandatory and suggested equipment and furnishings. Angry Chickz also offers an initial training program for up to 4 individuals, including the Operating Principal and Restaurant Leader, ensuring they meet competency standards. Angry Chickz requires a Grand Opening Support Fee which funds a pre- and post-opening marketing campaign, including social media, local influencers, videography, and photography to capture the excitement of the opening. After opening, Angry Chickz provides up to 5 days of on-site training and assistance. They offer additional training courses, programs, and conventions, which may require an extra fee, and provide further assistance and advice upon request (with franchisees reimbursing expenses). Angry Chickz continuously issues and modifies Standards and System procedures, provides ongoing access to manuals, and approves local advertising materials. Angry Chickz maintains and administers a Brand Fund for national and regional advertising, periodically designates authorized products, and grants franchisees the right to use its trademarks and confidential information.
Initial Training Hours
150
Training Location
Angry Chickz headquarters and a designated training restaurant in Thousand Oaks, California, and may also include remote training or self-study.
Ongoing Support
After opening their Angry Chickz restaurant, franchisees receive ongoing support including up to 5 days of on-site training around the grand opening period. Angry Chickz offers additional training courses, programs, and conventions, which may require an additional fee, and provides further assistance and advice upon reasonable request (for which franchisees must reimburse expenses and pay current training charges). Angry Chickz continuously issues and modifies the brand's Standards and System, and provides ongoing access to confidential Manuals. Angry Chickz also approves or disapproves local advertising, maintains and administers the Brand Fund, and periodically designates authorized products that franchisees must sell. Franchisees are also allowed to use Angry Chickz's trademarks and confidential information. Angry Chickz requires at least one representative from the franchisee's team (an owner or other designated representative) to attend an annual meeting, for which the franchisee covers all costs and a meeting fee. After the initial two restaurants, the franchisee's certified Trainer becomes responsible for training other employees in Standards, and each restaurant must be operated and supervised by persons who have successfully completed the specified training.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
limited
Territory Size Requirements
Angry Chickz typically defines its franchise territories as a 3-mile radius around the restaurant location. However, in densely populated urban areas, the Protected Area might be smaller or limited to the restaurant's immediate location or a specifically described geographic area. Angry Chickz considers factors such as demographics, population size, neighboring businesses, visibility, and proximity to other businesses when determining the size of a Protected Area.
Staffing Notes
Angry Chickz franchisees must ensure their restaurants are staffed by an adequate number of fully trained employees. A key leadership role is the "Operating Principal," who must successfully complete the initial training program, dedicate their full-time efforts solely to the restaurant's operations (or to all restaurants owned by the franchisee/affiliates in the same geographic region for multi-unit franchisees), and meet specific educational, experience, and financial criteria. If the franchisee is an entity, the Operating Principal is responsible for communicating with Angry Chickz and overseeing day-to-day operations. Each restaurant also requires a "Restaurant Leader" who completes initial training and has the authority and responsibility for daily management. With Angry Chickz's consent, the Operating Principal and Restaurant Leader can be the same person. Additionally, a "Trainer" must be certified by Angry Chickz to train other restaurant-level employees on standards. All employees working in an Angry Chickz restaurant must wear approved uniforms, present a neat and clean appearance, and generally be dedicated solely to that specific restaurant unless written consent for other arrangements is obtained from Angry Chickz. Initial training of approximately 150 hours over 15 days is provided for up to four key personnel, including the Operating Principal, Restaurant Leader, and Trainer. Angry Chickz also provides up to five days of on-site opening assistance. Franchisees are responsible for their employees' travel and living expenses during training and any additional training fees for extra training or rescheduling. At least one franchisee representative must also attend an annual convention.