Under what circumstances might the initial franchise fee for a Chicken Guy franchise be reduced or waived?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
y 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.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the initial franchise fee is typically $50,000, but there are several circumstances in which it may be reduced or even waived. If a franchisee signs a Development Agreement to develop three or more Chicken Guy restaurants, the initial franchise fee is reduced to $40,000 per restaurant. Similarly, if the restaurant is opened within a Walmart store under the Nontraditional Location Addendum, the initial franchise fee is also reduced to $40,000.
Chicken Guy also offers a veterans discount. If the franchisee (or someone with at least 51% ownership) provides documentation of honorable discharge from the U.S. military, the initial franchise fee is reduced by $5,000. However, this discount comes with a condition: if the franchise is transferred or terminated within one year of opening, the $5,000 discount must be repaid to Chicken Guy.
Finally, Chicken Guy states that in the last fiscal year, the initial franchise fee was reduced to $25,000 for one franchisee and waived entirely for another. This indicates that Chicken Guy may, at its discretion, offer further reductions or waivers, although these appear to be exceptional cases rather than standard policy. Prospective franchisees should inquire about the specific conditions and criteria for such discretionary reductions or waivers.