When is the Chicken Guy development fee due?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount Low Estimate | Amount High Estimate | Method of Payment1 | When Due | To whom payment is to be made |
|---|---|---|---|---|---|
| Development Fee (18) | $120,000 | $200,000 | Lump sum | Upon signing Development Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–20)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the development fee is due upon signing the Development Agreement. The development fee for three to five Chicken Guy restaurants ranges from $120,000 to $200,000, paid as a lump sum to the franchisor. This fee is for franchisees who commit to developing multiple locations.
It is important to note that the development fee is non-refundable. However, the FDD states that the development fee will be credited against the Initial Franchise Fee, which are payable under each Franchise Agreement signed under the Development Agreement. This means that while the initial payment is non-refundable, it will offset the franchise fees for each individual Chicken Guy restaurant opened under the development agreement.
Prospective franchisees should carefully consider their ability to develop multiple locations and the financial implications of the development fee before entering into a Development Agreement with Chicken Guy. Reviewing the Development Agreement with a business advisor is recommended to fully understand the terms and obligations.