When is the Chicken Guy transfer fee of $10,000 paid?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ransferee, if Chicken Guy disapproves the Transfer pursuant to this Section 10 or for other legitimate business purposes. Chicken Guy, without any liability to Developer or the proposed transferee, has the right, in its reasonable business discretion, to communicate and counsel with
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the transferor must pay a nonrefundable transfer fee of $10,000 to Chicken Guy in connection with the company's review of the transfer application. This fee is paid before the transfer becomes effective, assuming Chicken Guy approves the proposed transfer.
This means that if a Chicken Guy franchisee decides to sell their franchise to someone else, they must first get approval from Chicken Guy. As part of this process, the franchisee (transferor) has to pay Chicken Guy a $10,000 fee to cover the costs of reviewing the application. This fee is nonrefundable, regardless of whether the transfer is ultimately approved.
It is important to note that this fee is specifically for the review of the transfer application. Other conditions must also be met for the transfer to be approved, such as the execution of agreements and releases, and potentially the completion of training programs by the transferee. The $10,000 fee is just one component of the overall transfer process.