Under the Development Agreement, what is the minimum number of Chicken Guy restaurants I must agree to develop?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must agree to develop at least one Chicken Guy! Restaurant under the Development Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if you sign a Development Agreement, you must agree to develop at least one Chicken Guy restaurant. This agreement mandates a Development Fee of $50,000 for each restaurant you commit to developing. However, if you agree to develop three or more Chicken Guy restaurants, the Development Fee is reduced to $40,000 per restaurant.
The Development Fee is generally paid as a lump sum, although Chicken Guy may allow installment payments under certain circumstances. This fee is non-refundable but will be credited towards the Initial Franchise Fee required for each Franchise Agreement signed under the Development Agreement. The total credit provided for these franchise agreements will not exceed the initial Development Fee you paid.
For a prospective Chicken Guy franchisee, this means that entering a Development Agreement requires a commitment to open at least one restaurant, with financial incentives to commit to developing multiple locations. This structure encourages area development and expansion for Chicken Guy, while also potentially lowering the upfront costs per restaurant for the franchisee if they commit to a larger development plan.