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Under what conditions is the initial franchise fee for a Chicken Guy franchise reduced to $40,000?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

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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 red

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. However, there are two specific scenarios where the initial franchise fee is reduced to $40,000. The first is if you sign a Development Agreement to develop three or more Chicken Guy restaurants. In this case, the initial franchise fee is reduced to $40,000 for each restaurant. The second scenario is if you open a Chicken Guy restaurant within a Walmart store, in which case you will sign a Nontraditional Location Addendum to the Franchise Agreement and pay the reduced fee.

For franchisees planning to develop multiple Chicken Guy locations, negotiating a Development Agreement for three or more units can result in a $10,000 reduction in the initial franchise fee per location. This can represent a significant cost savings. Alternatively, pursuing a location within a Walmart store also provides the same reduction in the initial franchise fee.

It is important to note that these are the only two scenarios explicitly outlined in the FDD where the initial franchise fee is reduced to $40,000. Prospective franchisees should carefully consider these options and discuss them with Chicken Guy to determine the most suitable path for their investment. The FDD also mentions that in the last fiscal year, the initial franchise fee was reduced to $25,000 for one franchisee and waived for another, indicating that there may be room for negotiation or special circumstances that could further alter the initial fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.