What is the minimum number of Chicken Guy restaurants that must be developed under a Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you and the area in which you are interested meet certain qualifications, you can buy the rights to develop one or more Franchised Restaurants within a geographic area ("Development Territory") by signing a Development Agreement (Exhibit D) and paying the Development Fee. You must agree to develop at least one Chicken Guy! Restaurant under the Development Agreement, however most developers agree to develop three to five Chicken Guy! Restaurants under the Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a Development Agreement allows a franchisee to develop one or more Chicken Guy restaurants within a specific geographic area. The minimum number of restaurants a developer must agree to develop under the Development Agreement is one. However, the FDD notes that most developers agree to develop three to five Chicken Guy restaurants under a Development Agreement.
This means that while the initial commitment can be just one restaurant, Chicken Guy encourages a larger commitment. This likely allows Chicken Guy to expand more rapidly and efficiently within a Development Territory.
For a prospective franchisee, this is an important consideration. While starting with a single restaurant is possible, Chicken Guy seems to prefer developers who are willing to commit to multiple locations. This could affect the negotiation of the Development Agreement and the geographic area granted to the developer. A potential franchisee should discuss with Chicken Guy their plans for expansion and the number of restaurants they intend to develop to ensure alignment with the franchisor's expectations.