Is there an exception to the transfer fee for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE(1) | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Transfer | $10,000 | Prior to consummation of transfer | We have the right to approve all transfers. There is no fee if you transfer an agreement to a corporation or limited liability company that your owners control. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the standard transfer fee is $10,000. However, there is an exception to this fee. Chicken Guy will not charge a transfer fee if the franchise agreement is transferred to a corporation or limited liability company that the current owners control.
This exception can be beneficial for franchisees who wish to restructure their business for legal or tax purposes without incurring additional costs. It is a fairly common practice in franchising to allow transfers to owner-controlled entities without a fee, as the ownership and control essentially remain the same.
It is important to note that while this specific exception exists, Chicken Guy retains the right to approve all transfers, regardless of whether a fee is applicable. This ensures that any new entity still meets the franchisor's standards and qualifications. Franchisees should carefully review the transfer requirements in the Franchise Agreement to ensure compliance and avoid any potential issues during the transfer process.