What is the Development Fee for three to five Chicken Guy restaurants related to the 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 |
| Business Plan | $3,000 | $5,000 | As incurred | As incurred | Third parties |
| Preparation, Legal Fees | |||||
| & Miscellaneous | |||||
| Expenses (19) | |||||
| Total | $123,000 | $205,000 |
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 for a Development Agreement to develop three to five restaurants ranges from $120,000 to $200,000. This fee is paid in a lump sum when the Development Agreement is signed and is paid directly to Chicken Guy.
The FDD also notes that this Development Fee is not refundable. However, the Development Fee will be credited against the Initial Franchise Fee that is payable to Chicken Guy under each Franchise Agreement signed as part of the Development Agreement. The document specifies that a franchisee must agree to develop at least one Chicken Guy restaurant under the Development Agreement.
In addition to the Development Fee, the estimated initial investment for a Development Agreement also includes business plan preparation, legal fees, and miscellaneous expenses, which range from $3,000 to $5,000. Therefore, the total estimated initial investment for a Chicken Guy Development Agreement ranges from $123,000 to $205,000.