Under what condition does the Development Fee for each Chicken Guy restaurant get reduced to $40,000?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
Development Agreement
You must pay a Development Fee in the amount of $50,000 for each Franchised Restaurant that you agree to develop when you sign the Development Agreement. If you sign a Development Agreement to develop three or more Franchised Restaurants, we will reduce the Development Fee to $40,000 for each Franchised Restaurant. The Development Fee is typically paid in one lump sum; however, in certain circumstances we may permit developers to pay the Development Fee in installments.
The Development Fee is not refundable, but will be credited against the Initial Franchise Fee, which is payable to us under each Franchise Agreement that you sign under the Development Agreement. The aggregate amount of the Initial Franchise Fee credits that we provide for the Franchise Agreements you sign will not exceed the amount of the Development Fee that you paid when you signed the Development Agreement. You must agree to develop at least one Chicken Guy! Restaur
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the standard Development Fee is $50,000 for each restaurant a franchisee commits to develop under a Development Agreement. However, Chicken Guy offers a reduced Development Fee under specific conditions.
The Development Fee for each Chicken Guy restaurant is reduced to $40,000 if the franchisee signs a Development Agreement to develop three or more franchised restaurants. This reduction incentivizes franchisees to commit to a larger-scale development plan with multiple locations.
The Development Fee is generally paid as a lump sum, but Chicken Guy may allow developers to pay in installments under certain circumstances. While the Development Fee is non-refundable, it is credited towards the Initial Franchise Fee required for each individual Franchise Agreement signed under the Development Agreement. The total credit applied to the Initial Franchise Fees will not exceed the total Development Fee paid. Franchisees must agree to develop at least one Chicken Guy restaurant under the Development Agreement.