What is the estimated high-end initial investment for a traditional drive-thru Chicken Guy restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount: In-line, End Cap or Drive Thru (1) | Amount: Nontraditional Restaurant (2) | Method of Payment (3) | When Due | To Whom Paid |
|---|---|---|---|---|---|
| Deposit Fee(4) | $0 - $5,000 | $0 - $5,000 | Lump sum | See Item 5 | Chicken Guy |
| Initial Franchise Fee | $50,000 | $40,000 - $50,000 | Lump sum | See Item | Chicken |
| (4) | 5 | Guy | |||
| Grand Opening | $10,000 | $5,000 | Progress | As | Vendors |
| Required Spending (5) | payments | incurred | |||
| Leasehold Costs and Building and Site Improvements (6) | $350,000 - $1,900,000 | $350,000 - $1,200,000 | Progress payments | As arranged | Contractor, Architect |
| Furnishings, Fixtures | $195,000 - $600,000 | $195,000 - $600,000 | As | As | Vendors |
| and Equipment (7) | arranged | incurred | |||
| Signage (8) | $20,000 - $95,000 | $15,000 - $95,000 | As arranged | As incurred | Vendors |
| Point of Sale | $4.500 - $25,000 | $4,500 - $25,000 | As | As | Vendors |
| System (9) | arranged | incurred | |||
| Technology (10) | $15,000 - $30,000 | $15,000 - $25,000 | As arranged | As incurred | Vendors |
| Graphic Items (11) | $30,000 - $60,000 | $20,000 - $60,000 | As arranged | As incurred | Vendors |
| Type of Expenditure | Amount: In-line, End Cap or Drive Thru (1) | Amount: Nontraditional Restaurant (2) | Method of Payment (3) | When Due | To Whom Paid |
| Professional Fees (12) | $10,000 - $20,000 | $10,000 - $20,000 | Before opening | As incurred | Attorney, accountant, and other business advisors |
| Initial Manager | $15,000 - $25,000 | $15,000 - $25,000 | As | As | Third |
| Training (13) | arranged | incurred | parties | ||
| Pre-Opening Costs | $15,000 - $50,000 | $15,000 - $50,000 | As | As | Vendors |
| (14) | arranged | incurred | |||
| Additional Funds – | $50,000 - $150,000 | $50,000 - $150,000 | As | As | Vendors |
| 3 months (16) | arranged | incurred | |||
| TOTAL ESTIMATED INITIAL INVESTMENT (17) | $764,500 - $3,020,000 | $734,000 - $2,310,000 | (Estimate does not include the cost to obtain an alcoholic beverage license which you may choose to incur. See Note 15 below.) |
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 total estimated initial investment for a traditional in-line, end-cap, or drive-thru restaurant ranges from $764,500 to $3,020,000. The FDD notes that drive-thru locations typically range toward the higher end of this estimate. This investment covers various expenses, including the deposit fee, initial franchise fee, grand opening expenses, leasehold costs and building improvements, furnishings, signage, point of sale system, technology, graphic items, professional fees, initial manager training, pre-opening costs, and additional funds for the first three months of operation.
The high-end estimate of $3,020,000 includes significant costs such as leasehold improvements, which range from $350,000 to $1,900,000, and furnishings and equipment, which range from $195,000 to $600,000. Signage can cost up to $95,000, and pre-opening costs can reach $50,000. Additionally, the estimate includes $150,000 for additional funds to cover the first three months of operation. These figures do not include the cost of an alcoholic beverage license, which could range from $10,000 to $200,000 if the franchisee chooses to serve alcohol.
Prospective franchisees should carefully review these figures with a business advisor to understand the potential financial commitment. The FDD emphasizes that Chicken Guy does not offer direct or indirect financing for any part of the initial investment. Franchisees should also note that the costs can vary significantly based on location, the condition of the property, and local regulatory requirements. Therefore, thorough due diligence and a comprehensive business plan are essential before making a final decision.