When is the development fee due for a Chicken Guy development agreement?
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. This fee is paid directly to Chicken Guy.
It's important to note that the development fee is non-refundable. However, the FDD states that Chicken Guy will credit the development fee against the Initial Franchise Fee, which is payable under each Franchise Agreement signed under the Development Agreement. This means that while you won't get the development fee back in cash, it will reduce the amount you owe for the initial franchise fees when you open each restaurant.
Prospective franchisees should carefully consider the implications of this payment schedule. Since the development fee is due upfront and is non-refundable, franchisees need to be certain they are committed to developing the agreed-upon number of Chicken Guy restaurants. Failure to open all the restaurants within the development territory could result in losing the development fee without fully realizing its benefit as a credit towards franchise fees.