What is the low estimate for the total initial investment for a Chicken Guy franchise?
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 an in-line, end cap, or drive-thru restaurant ranges from $764,500 to $3,020,000. For a nontraditional restaurant, the range is $734,000 to $2,310,000. These estimates do not include the cost of obtaining an alcoholic beverage license.
The initial investment covers various expenses, including a deposit fee ($0 to $5,000), the initial franchise fee ($50,000 for in-line, end cap, or drive-thru, and $40,000 to $50,000 for nontraditional), grand opening spending ($10,000 for in-line, end cap, or drive-thru, and $5,000 for nontraditional), leasehold costs and building improvements ($350,000 to $1,900,000 for both), furnishings and equipment ($195,000 to $600,000 for both), signage ($20,000 to $95,000 and $15,000 to $95,000), point of sale system ($4,500 to $25,000 for both), technology ($15,000 to $30,000 and $15,000 to $25,000), graphic items ($30,000 to $60,000 and $20,000 to $60,000), professional fees ($10,000 to $20,000 for both), initial manager training ($15,000 to $25,000 for both), pre-opening costs ($15,000 to $50,000 for both), and additional funds for three months ($50,000 to $150,000 for both).
The type of restaurant location significantly impacts the initial investment. Traditional restaurants (in-line, end cap, or drive-thru) generally have higher initial costs due to more extensive building and site improvements. Nontraditional restaurants, which are often located in venues like airports or food courts, may have lower leasehold and building costs but can still vary widely based on the venue type and location.
Prospective franchisees should carefully review these figures with a business advisor, considering the specific type and location of the restaurant they plan to develop. The FDD advises checking with relevant regulatory agencies to identify costs for required building permits, impact fees, taxes, bonds, licenses, and other fees, as these can vary greatly depending on location, size, and market conditions. Additionally, the cost of an alcoholic beverage license, if desired, can range from $10,000 to $200,000, depending on the jurisdiction.