Is the Chicken Guy renewal fee in addition to any capital expenditures?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
The renewal fee shall be in addition to any capital expenditures that Franchisee is required to make pursuant to Section 2.B.(2)(B).
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the renewal fee is in addition to any required capital expenditures. To renew the franchise agreement for an additional term, the franchisee must pay a renewal fee equal to 50% of the then-current initial franchise fee for a nontraditional location.
In addition to the renewal fee, the franchisee is also responsible for renovating and modernizing the franchised restaurant to meet the current image standards of the Chicken Guy system for new restaurants in similar nontraditional locations. This renovation ensures that the restaurant aligns with the brand's current standards and image.
Therefore, a Chicken Guy franchisee should anticipate both a monetary renewal fee and potential significant capital expenditures to update the restaurant's appearance and facilities when considering renewing their franchise agreement.