What is the high-end estimated initial investment for a Chicken Guy development agreement for three to five restaurants?
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 total high-end estimated initial investment for a development agreement for three to five restaurants is $205,000. This includes a development fee ranging from $120,000 to $200,000, payable in a lump sum upon signing the Development Agreement to Chicken Guy. Additionally, it incorporates expenses for business plan preparation, legal fees, and miscellaneous costs, estimated between $3,000 and $5,000, payable to third parties as incurred.
Prospective Chicken Guy franchisees should note that the development fee is non-refundable but will be credited against the Initial Franchise Fee, which are payable under each Franchise Agreement signed under the Development Agreement. This initial investment covers the right to develop multiple Chicken Guy restaurants within a specific territory, but does not include the costs associated with opening each individual restaurant.
It is important for potential franchisees to carefully consider these initial investment costs and factor them into their overall financial planning. Consulting with business advisors is recommended to fully understand the financial implications before entering into a development agreement with Chicken Guy.