What is the standard Development Fee for each Chicken Guy franchised restaurant under a Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
Development Agreement
You must pay a Development Fee in the amount of $50,000 for each Franchised Restaurant that you agree to develop when you sign the Development Agreement. If you sign a Development Agreement to develop three or more Franchised Restaurants, we will reduce the Development Fee to $40,000 for each Franchised Restaurant. The Development Fee is typically paid in one lump sum; however, in certain circumstances we may permit developers to pay the Development Fee in installments.
The Development Fee is not refundable, but will be credited against the Initial Franchise Fee, which is payable to us under each Franchise Agreement that you sign under the Development Agreement. The aggregate amount of the Initial Franchise Fee credits that we provide for the Franchise Agreements you sign will not exceed the amount of the Development Fee that you paid when you signed the Development Agreement. You must agree to develop at least one Chicken Guy! Restaur
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the standard Development Fee is $50,000 for each restaurant a franchisee commits to develop under a Development Agreement. However, if the agreement includes developing three or more Chicken Guy restaurants, the Development Fee is reduced to $40,000 per restaurant. This fee is generally paid as a lump sum when the Development Agreement is signed, though Chicken Guy may allow installment payments in certain situations.
The Development Fee is non-refundable, but it is credited towards the Initial Franchise Fee due for each individual Franchise Agreement signed under the Development Agreement. The total credit applied to these Initial Franchise Fees will not exceed the total Development Fee paid. The Development Agreement must commit the franchisee to developing at least one Chicken Guy restaurant.
This structure is common in franchising, where development agreements incentivize franchisees to open multiple locations. The reduced fee for multiple units lowers the upfront investment per restaurant, encouraging larger commitments. While the Development Fee is non-refundable, the credit towards the Initial Franchise Fee mitigates some of the risk, as the money is not entirely lost if the franchisee proceeds with opening restaurants.