What is 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. This fee is due prior to the completion of the transfer. Chicken Guy retains the right to approve all franchise transfers, ensuring that any new franchisee meets their standards and qualifications.
However, there is an exception to this fee. If a franchisee transfers the agreement to a corporation or limited liability company that the franchisee's owners control, then Chicken Guy will not charge a transfer fee. This provides flexibility for franchisees who may want to restructure their business for legal or financial reasons without incurring additional costs.
Transfer fees are a common aspect of franchising, intended to compensate the franchisor for the administrative and legal costs associated with vetting and approving a new franchisee. The $10,000 fee charged by Chicken Guy is within the typical range for franchise transfer fees, but it's important for prospective franchisees to factor this potential cost into their long-term business planning, especially if they anticipate needing to transfer ownership at any point.