Chicken Guy
Chicken Guy! offers fast casual restaurants featuring all-natural antibiotic-free chicken tenders. Known for its commitment to quality ingredients, the franchise operates in the quick-service restaurant sector.
Chicken Guy franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a Chicken Guy! Restaurant ranges from $764,500 to $3,020,000. This includes a mandatory payment of $53,000 to $58,000 to the company [p.1].
What is the initial franchise fee?
The initial franchise fee is typically set forth on the attached Data Sheet and must be paid simultaneously with the execution of the Agreement. It is not refundable and generally amounts to $50,000 per restaurant, though it can be reduced to $40,000 for commitments to open multiple restaurants or waived in certain cases [p.112, p.215].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a percentage of Gross Sales (excluding alcoholic beverage revenues if prohibited by law) paid to Chicken Guy. Additionally, Chicken Guy reserves the right to modify the method of payment for royalties and other amounts, including advertising fees, upon written notice [p.112, p.113].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in terms of duration. According to [p.105], you can renew the franchise agreement if you remain a franchisee for the Renewal Term, provided you timely sign and return the renewal agreement along with the required fee before the expiration of the Initial Term.
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you must advise Chicken Guy in writing and submit a franchise application for the proposed transferee along with all requested contracts and agreements. Chicken Guy will then decide whether to approve the transfer based on its reasonable business discretion, considering various relevant factors [p.138]. If Chicken Guy does not exercise its right of first refusal, it retains the decision-making authority [p.77].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable period, which cannot exceed 30 days [p.212]. This isn't specified in the excerpts for other grounds on which the franchisor can terminate the agreement.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD sections focus on experience, character, credit rating, and organizational compatibility rather than specific financial metrics like net worth or liquid capital.
Do I get an exclusive or protected territory?
No, you do not get an exclusive or protected territory. According to [p.169], there is no exclusivity and any reference to a Protected Area in the Agreement is deemed deleted and inapplicable. Additionally, Chicken Guy reserves the right to operate or license others to operate Chicken Guy! Restaurants anywhere in the Protected Area, including locations that compete with your Franchised Restaurant ([p.148] and [p.36]).
What training and ongoing support does the franchisor provide?
The franchisor provides initial manager training and team member training on-site at the Franchised Restaurant. For non-management staff in the first Chicken Guy! Restaurant, this includes seven days of training before and after opening [p.33]. If you operate two or more restaurants, you may request permission to establish one as a Certified Training Restaurant (CTR) where initial manager training can be offered to your employees within 90 days of opening a third restaurant [p.33]. The franchisor also periodically visits CTRs to ensure they meet standards and may revoke certification if necessary [p.33]. This isn't specified in the excerpts for ongoing support beyond these trainings.
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 provide financial performance information based on actual records of existing outlets you are considering buying. However, they do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, and they authorize no such representations from their employees or representatives either orally or in writing [p.47].
What am I restricted to selling, and where must I buy supplies?
You must sell only those products and services expressly authorized by the franchisor in the Manual or otherwise in writing. The franchisor can restrict sales of menu items to certain time periods and reserves the right to change menu items, ingredients, and standards without limitation. For supplies, you are typically required to buy from suppliers designated by the franchisor, though this is not explicitly stated in these excerpts. [p.40]