When is the initial franchise fee due to Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer 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 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 | Pro |
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 initial franchise fee is due as a lump sum. Item 5 of the FDD provides further details regarding the payment of the deposit fee and initial franchise fee. The initial franchise fee for an in-line, end cap, or drive-thru location is $50,000. For a nontraditional restaurant, the initial franchise fee ranges from $40,000 to $50,000.
Prospective franchisees should note that costs paid to Chicken Guy are non-refundable. However, the refundability of costs paid to third parties will vary based on the practices in the area where the franchised restaurant is located. This means that while the initial franchise fee is non-refundable, other expenses like leasehold costs or building improvements may be refundable depending on local regulations and agreements with vendors.
Understanding when fees are due and to whom they are paid is crucial for managing the initial investment. The FDD outlines that the initial franchise fee is paid directly to Chicken Guy, while other expenses like grand opening spending, leasehold costs, and equipment are paid to various vendors as progress payments are incurred or as arranged. This breakdown helps franchisees plan their cash flow and manage their financial obligations during the startup phase.