What is the standard Initial Franchise Fee for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement.
Franchise Agreement
When you sign the Franchise Agreement, you shall pay an Initial Franchise Fee in the amount of $50,000. The Initial Franchise Fee is fully earned by us when paid and is not refundable.
If you sign a Franchise Agreement pursuant to a Development Agreement, where you agreed to develop three or more Chicken Guy! Restaurants, we will reduce the Initial Franchise Fee to $40,000. The specific amount of the Initial Franchise Fee that you will owe under each Franchise Agreement will be specified in the Development Agreement.
If you open a Chicken Guy! Restaurant within a Walmart store, you will sign the Nontraditional Location Addendum to the Franchise Agreement and you will pay a reduced Initial Franchise Fee of $40,000.
Deposit Fee
When we approve your application to become a Chicken Guy! Restaurant franchisee, and prior to our preparation of your Franchise Agreement or Development Agreement, you will sign the Agreement Request Form attached as Exhibit C and pay a Deposit Fee in the amount of $5,000. The Deposit Fee is not refundable, but if you sign a Franchise Agreement or Development Agreement within 10 business days of receiving the agreement for signature, Chicken Guy shall apply the Deposit Fee toward payment of the Development Fee required under the Development Agreement or the Initial Franchise Fee required under the Franchise Agreement, as applicable.
Veterans Discount
Under our veterans program, if you (or a holder of at least a 51% ownership interest in your franchisee entity) provide us with a DD Form 214 or other adequate documentation, as determined by us, demonstrating honorable discharge from the United States military and you sign a Franchise Agreement to develop and operate a new Franchised Restaurant, then we will reduce your Initial Franchise Fee due under the Franchise Agreement by $5,000.
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 Initial Franchise Fee is $50,000. This fee is payable when you sign the Franchise Agreement. Chicken Guy considers this fee fully earned upon payment, and it is non-refundable. However, there are circumstances where this fee may be reduced.
If a prospective franchisee signs a Development Agreement to develop three or more Chicken Guy restaurants, the Initial Franchise Fee is reduced to $40,000. The specific amount owed under each Franchise Agreement will be detailed in the Development Agreement. Additionally, if the Chicken Guy restaurant is located within a Walmart store and the franchisee signs the Nontraditional Location Addendum, the Initial Franchise Fee is also reduced to $40,000.
Chicken Guy also offers a veterans program that reduces the Initial Franchise Fee by $5,000 for eligible veterans who develop and operate a new franchised restaurant. To qualify, the veteran (or someone holding at least 51% ownership in the franchisee entity) must provide a DD Form 214 or other acceptable documentation demonstrating honorable discharge from the United States military and sign a Veterans Addendum to the Franchise Agreement. However, if the franchise is transferred or the Franchise Agreement is terminated before the first anniversary of the restaurant's opening, the $5,000 discount must be repaid to Chicken Guy.
While the Initial Franchise Fee is typically uniform, Chicken Guy states that in the last fiscal year, they reduced the Initial Franchise Fee to $25,000 for one franchisee and waived the Initial Franchise Fee for another franchisee. This indicates that the standard fee may be negotiable under certain circumstances.