When is the initial franchise fee fully earned by Chicken Guy?

According to Chicken Guy's 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned when paid to Chicken Guy and is non-refundable. This means that once a franchisee pays the initial fee, Chicken Guy has earned the fee and the franchisee is not entitled to a refund, regardless of whether the franchise ever opens or succeeds. This is a standard practice in franchising, as the initial fee compensates the franchisor for the initial services and expenses incurred in granting the franchise.

It is important for prospective Chicken Guy franchisees to understand that this fee is non-refundable. Franchisees should conduct thorough due diligence before signing the franchise agreement and paying the initial fee. This includes carefully reviewing the FDD, speaking with existing franchisees, and developing a comprehensive business plan.

While the initial franchise fee is non-refundable, Chicken Guy may offer a conditional opening under certain circumstances. This means that the franchisee may be allowed to open and operate the franchised location even if they have not fully complied with all the terms of the franchise agreement, as long as they agree to fulfill all remaining terms by the opening deadline. However, this is at Chicken Guy's sole discretion, and if the franchisee fails to meet the remaining terms, the agreement may be terminated.