factual

When is the Grand Opening Required Spending due for a Chicken Guy restaurant?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

STIMATED INITIAL INVESTMENT FRANCHISE AGREEMENT

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 Franc

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 Grand Opening Required Spending is due as incurred through progress payments to vendors. For an in-line, end cap, or drive-thru location, this spending is estimated to be $10,000. For a nontraditional restaurant, the estimated spending is $5,000.

This means that as Chicken Guy franchisees make progress on their grand opening preparations and incur costs with various vendors, they will need to make payments accordingly. This differs from expenses paid in a lump sum.

Prospective franchisees should carefully budget for these grand opening expenses and maintain open communication with vendors to manage payment schedules effectively. Item 11 of the Chicken Guy FDD provides further details regarding grand opening marketing obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.