Daddys Chicken Shack
Daddy's Chicken Shack offers regional development franchises for fast-food chicken restaurants. Known for casual dining and quick service, it operates in the fast-food restaurant industry.
Daddys Chicken Shack franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Daddy's Chicken Shack regional developer business ranges from $168,800 to $825,900. This includes the $125,000 to $750,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the population of the RD Territory and starts at $125,000 plus an additional $.125 for each person in excess of one million (1,000,000) in population. For example, if the RD Territory has a residential population of 1,450,000, the initial franchise fee would be $181,250 ([p.71]).
What are the ongoing royalty and advertising fees?
Ongoing royalties are based on a percentage of gross revenues earned by franchisees, specifically related to the use of the company's intellectual property [p.51]. As for advertising fees, Regional Developers must spend at least $200 per month on local advertising and social engagement within their RD Territory to promote the business and system [p.16], which includes costs like purchasing and producing advertising materials, media space or time, postage, shipping, telephone, and photocopying, but excludes certain expenses such as salaries, charitable contributions, political donations, or customer discounts [p.89].
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 specific duration of the initial franchise agreement or the renewal process beyond mentioning that the franchisor has the right to refuse renewal without compensating the franchisee [p.5(d)].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified reasons [p.5]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
According to [p.139], the franchisor may terminate the agreement on any grounds available by law. However, [p.143] specifies that good cause for termination includes a franchisee's failure to comply with lawful provisions of the franchise agreement and failing to cure such failures after receiving written notice and a reasonable opportunity to do so, which cannot exceed 30 days.
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 net worth or liquid capital requirements for qualifying as a Regional Developer. However, it mentions that you must have adequate financial resources and capital to operate the Regional Developer Business [p.100], and notes that estimates of initial investment do not include financing costs incurred by you [p.17].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the company [p.30, p.131]. This protection is further limited to a 2-mile radius around operating restaurants in Indiana for regional developers [p.134].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs overseen by Fred Malone, Vice President of Franchise Operations & Training. These programs include manuals and other written materials. Additionally, the franchisor may offer additional training upon request, though the franchisee is responsible for all associated costs [p.29]. Ongoing support includes providing ongoing support and assistance to RD Territory Franchisees, promoting the brand, resolving issues, and ensuring quality assurance and compliance with brand standards [p.10].
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 if there is a reasonable basis for it and if it is included in this Disclosure Document [p.36]. However, they do not make any representations about future financial performance of franchises or company-owned outlets [p.36], nor do they authorize their employees or representatives to make such representations either orally or in writing [p.36].
What am I restricted to selling, and where must I buy supplies?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific restrictions on what you are allowed to sell or sources for purchasing supplies beyond mentioning that certain items may need to be bought from approved suppliers designated by the franchisor [p.3, p.19].