What is the renewal fee for a Chicken Guy franchise at the expiration of the Initial Term?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Renewal Fee: | $10,000 | | Renewal Term: | 10 years Notice of Renewal required 8 – 12 months prior to expiration of Initial Term |
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the renewal fee is $10,000. To renew the franchise for an additional term of 10 years, the franchisee must provide notice 8-12 months before the initial term expires.
It is important to note that the renewal is contingent upon meeting certain conditions. The franchisee must not be in default of the agreement, must renovate the restaurant to meet current image standards, and must secure the right to remain at the location. Additionally, the franchisee must sign a general release and covenant not to sue Chicken Guy.
These conditions are fairly standard in franchising, as franchisors want to ensure that franchisees are in good standing and that the brand image is maintained. The renewal fee itself is also typical, although the specific amount can vary widely among different franchise systems. Prospective franchisees should carefully consider these requirements and factor the potential renovation costs into their financial planning.