Chicken Salad Chick
Chicken Salad Chick offers fast-casual chicken salad restaurants with specialty salads, gourmet sides, and soups in a clean, friendly atmosphere. Known for quick service and wholesome meals, it operates in the casual dining sector.
About Chicken Salad Chick
Chicken Salad Chick is a fast casual restaurant chain and franchise of chicken salad restaurants currently based in Atlanta, Georgia. To date, the chain consists of over 300 franchise restaurants and stores in 22 different U.S. states.
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
Chicken Salad Chick franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation if you acquire development rights (with a minimum required commitment of 2 Chicken Salad Chick Restaurants) is $797,000 to $1,014,500 for a non-Drive-Thru location and $822,000 to $1,049,500 for a Drive-Thru location. [p.18]
What is the initial franchise fee?
The initial franchise fee for a Chicken Salad Chick restaurant is $50,000 [p.13, p.73]. If you commit to develop additional restaurants after the first one under an Area Development Agreement (ADA), the initial franchise fee for each subsequent restaurant is $45,000, with a $20,000 deposit applied toward this fee [p.18, p.136].
What are the ongoing royalty and advertising fees?
The franchisees will pay a Continuing Royalty Fee equal to the greater of $600 or 5% of their Gross Sales. This fee is paid on the 5th and 20th day of each month, covering the previous semi-monthly period [p.74]. Advertising contributions are not specified in these excerpts for ongoing fees [p.90].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the duration of the initial franchise agreement or the renewal process beyond mentioning that a Renewal Franchise Agreement will be signed when the current one expires [p.263].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.5]. This means you would need approval from the franchisor to sell or transfer your franchise, and they have the right to deny such requests based on their discretion [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if the franchisee commits an act constituting grounds for termination as specified in the agreement [p.106]. Additionally, the franchisor has the right to terminate the agreement if there is a material breach, such as failing to develop the required number of restaurants according to the Development Schedule [p.37].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on the net worth or liquid capital required for qualification as a franchisee.
Do I get an exclusive or protected territory?
Yes, you receive a Protected Area around the site of your restaurant. This area is typically a 1-mile radius from the front entrance and is exclusive during the franchise term, meaning the franchisor and their affiliates cannot operate another Chicken Salad Chick restaurant within this area [p.35]. However, outside this Protected Area, you face potential competition from other franchisees or company-owned outlets [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive training program for new franchisees, including their Operating Partner and two other key employees. This training covers various operational aspects such as business procedures, equipment maintenance, accounting principles, food preparation, and customer service [p.92]. Additionally, if the franchisee has not previously owned a Chicken Salad Chick restaurant, an opening team will assist with up to 10 days of support during the initial setup, including implementing internal controls, training employees, and evaluating initial business operations [p.33].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, the company had 206 franchised stores. Two franchised restaurants permanently closed during 2024 [p.50], and one previously franchised store was acquired by SSRG II, LLC in 2024 [p.175].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor provides historical financial performance representation, including average, median, and high/low annual Gross Sales for both franchised and affiliate-owned outlets. This information is based on data from 177 franchised and 72 affiliate-owned Chicken Salad Chick Restaurants that were open and operating during all of 2024 [p.50]. However, the franchisor does not make any financial performance representations other than this historical data and does not authorize its employees or representatives to provide additional financial projections or information [p.56].
What am I restricted to selling, and where must I buy supplies?
You are required to purchase from the franchisor or designated suppliers certain proprietary items such as décor items, meats, sauces, seasonings, spices, and other food-related products that the franchisor deems necessary for maintaining quality standards and system uniformity [p.88]. Additionally, you must buy supplies and equipment through approved suppliers as specified by the franchisor [p.20, p.26].