factual

What is the range for the deposit fee for a traditional Chicken Guy restaurant?

Chicken_Guy Franchise · 2025 FDD

Answer 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

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 deposit fee for a traditional restaurant, specifically an in-line, end cap, or drive-thru location, ranges from $0 to $5,000. This deposit is paid as a lump sum to Chicken Guy, with the timing of the payment detailed in Item 5 of the FDD.

It's important to note that this deposit fee is part of the initial investment required to start a Chicken Guy franchise. The FDD specifies that costs paid to Chicken Guy are non-refundable. Prospective franchisees should clarify with Chicken Guy under what specific circumstances a deposit fee might be required, and what factors determine the amount of the deposit within the stated range.

Understanding the deposit fee is crucial for budgeting the total initial investment, which for a traditional Chicken Guy restaurant, including in-line, end cap, and drive-thru locations, ranges from $764,500 to $3,020,000. The deposit fee is a relatively small portion of this overall investment, but it's an upfront cost that franchisees need to account for. Franchisees should also be aware that the estimate does not include the cost to obtain an alcoholic beverage license.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.