Under what conditions is the Chicken Guy transfer fee waived?
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. However, this fee is waived under a specific condition.
The transfer fee is waived if a Chicken Guy franchisee transfers their franchise agreement to a corporation or limited liability company. This waiver applies only if the franchisee or the franchisee's owners maintain control over the corporation or LLC.
This condition benefits franchisees by allowing them to restructure their business for legal or tax purposes without incurring an additional $10,000 fee, as long as the ownership and control remain within the same hands. This is a fairly standard practice in franchising, as franchisors often want to facilitate internal restructuring without creating a barrier with a hefty fee, provided the original owner remains in control.