Big Chicken
Big Chicken offers fast-casual restaurants featuring chicken sandwiches and tenders with side dishes, salads, and desserts. Known for its chicken-focused menu, it operates in the quick-service restaurant sector.
About Big Chicken
Big Chicken is a fast casual restaurant chain in the United States. It was founded by retired Hall of Fame National Basketball Association star Shaquille O'Neal, along with JRS Hospitality and Authentic Brands Group. The chain serves Louisiana-style fried chicken sandwiches, Cheez-It macaroni, and cookies "as big as basketballs." A few locations offer craft beers, wine, and hard liquor.
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Big Chicken franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Big Chicken restaurant ranges from $681,500 to $1,535,500. This includes an additional $40,000 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee ranges from $33,300 to $40,000 and can vary based on factors such as the franchisee's experience, financial strength, and the number of restaurants committed to opening. This information is specified on page [p.18].
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts. The provided FDD excerpts focus on the recognition of revenue related to initial franchise or license fees, pre-opening services, and renewal/transfer fees but do not detail information about ongoing royalty and advertising fees.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically lasts for a 10-year term from the opening date of the Big Chicken Restaurant, with the option to renew for two consecutive 5-year terms [p.324]. Renewal is subject to the company's approval [p.324].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but the franchisor has the right to refuse this transfer for good cause [p.278]. The transfer fee is non-refundable except if the proposed transferee does not meet the franchisor's qualifications and the franchisor refuses consent, in which case up to 25% of the transfer fee may be retained by the franchisor [p.160].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts primarily detail the conditions under which a franchisee can terminate the agreement but do not specify the grounds for termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.65]. The Development Territory and Protected Area are not exclusive, meaning you may face competition from other franchisees, Big Chicken-owned outlets, or competitive brands within your assigned area [p.62]. This is further clarified by the fact that the Licensed Marks and System can be used anywhere without limitation to you [p.63], and the company retains rights to operate in your Protected Area [p.61].
What training and ongoing support does the franchisor provide?
The franchisor provides pre-opening services such as site selections, operational materials, and functional training courses. Additionally, they manage the brand marketing fund on an ongoing basis. Once a restaurant opens, revenue related to franchise rights and ongoing services is recognized over the duration of the franchise agreement on a straight-line basis [p.325]. For franchisees with multiple locations, there's also an option to apply for Training Store Certification after operating one Big Chicken restaurant for at least 12 months or opening three restaurants, which allows certified managers to train new hires instead of enrolling them in the training program [p.58].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may share actual records of an existing outlet if purchased, but does not make representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets. [p.86] Additionally, the franchisor is required to report any other financial performance information received from a franchisee to specific authorities. [p.354]
What am I restricted to selling, and where must I buy supplies?
You are restricted to engaging only in retail transactions of authorized goods and services for dine-in or take-out consumption. You may also offer catering services and delivery services through approved third-party restaurant delivery services within your Protected Area, with some conditions [p.62]. For supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4]. The franchisor can modify purchasing standards and procedures at their discretion, and you must comply [p.40].