When is the transfer fee due 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 transfer fee of $10,000 is due prior to the consummation of the transfer. This means that if a franchisee decides to sell their Chicken Guy franchise to a new owner, the $10,000 fee must be paid before the transfer is finalized and the new owner takes control of the franchise. Chicken Guy retains the right to approve all transfers, ensuring that any potential new franchisee meets their standards.
However, there is an exception to this fee. If the franchise agreement is transferred to a corporation or limited liability company controlled by the current owners, then no transfer fee is required. This provides flexibility for franchisees who may want to restructure their business ownership without incurring additional costs.
Transfer fees are a common aspect of franchising, intended to cover the franchisor's costs associated with reviewing and approving the transfer, as well as updating records and providing support to the new franchisee. The specific amount and terms can vary significantly between franchise systems, so it is important for prospective franchisees to carefully review the FDD and understand all associated costs.