What is the range for leasehold costs and building and site improvements for a traditional Chicken Guy restaurant?
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 |
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 estimated initial investment for leasehold costs and building and site improvements for a traditional restaurant ranges from $350,000 to $1,900,000. These costs are typically paid in progress payments as arranged with a contractor or architect. The FDD notes that traditional Chicken Guy restaurants may be developed as in-line, end cap, free-standing, or drive-thru locations, with the estimate based on in-line or end cap locations.
The document specifies that the investment for in-line and end cap locations will likely be on the lower end of the estimated range, while drive-thru locations will tend toward the higher end. However, if a franchisee plans to develop a free-standing location, the real estate, building, and site improvement costs could be significantly higher than the stated range. The Franchise Disclosure Document estimates that building and site improvement costs, including permits and municipality fees, will range from $400 to $500 per square foot or more, depending on the property's condition and local regulatory requirements.
Prospective franchisees should carefully consider these factors and consult with Chicken Guy, contractors, and local authorities to obtain accurate estimates for their specific location and restaurant type. Understanding these costs is crucial for planning the initial investment and ensuring the financial viability of the franchise.