Under what condition is the transfer fee waived 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, a transfer fee of $10,000 is typically required prior to the consummation of a franchise transfer, and all transfers are subject to the franchisor's approval. However, the transfer fee is waived if the franchise agreement is transferred to a corporation or limited liability company that is controlled by the franchisee's owners.
This waiver of the transfer fee provides a significant benefit to Chicken Guy franchisees who may wish to restructure their business for legal or financial reasons. By allowing the transfer of the agreement to a controlled entity without incurring the $10,000 fee, Chicken Guy provides flexibility for franchisees to manage their business operations effectively.
It is important for prospective Chicken Guy franchisees to understand the conditions under which this transfer fee is waived, as it can impact their long-term business planning and potential exit strategies. Franchisees should consult with legal and financial advisors to determine the most appropriate business structure for their specific circumstances and to ensure compliance with all transfer requirements.