Laynes Chicken
LAYNE'S CHICKEN FINGERS offers dine-in and take-out restaurants featuring chicken fingers, wraps, and sandwiches in the quick-service restaurant industry. Known for its secret sauce and crinkle-cut fries, this franchise provides a total investment of $451,500 to $1,050,000 per unit.
Laynes Chicken franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Layne's Chicken Fingers franchise ranges from $451,500 to $1,050,000. This includes $47,500 to $50,000 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $45,000 and it is non-refundable upon payment. [p.11]
What are the ongoing royalty and advertising fees?
The franchisee is required to pay a royalty ranging from one percent to five percent of sales [p.65]. The company expenses advertising costs as they are incurred, with no specific requirement for spending on behalf of franchisees; however, this does not include any mandatory advertising fees that the franchisee must pay directly [p.26].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.3], but franchisees may renew the agreement for one consecutive ten-year term if certain conditions are met [p.88]. This isn't specified in the excerpts regarding the original agreement's duration.
Can I sell or transfer my franchise, and what does that require?
You generally need the written consent of the franchisor to sell or transfer your franchise, all or substantially all of the assets of the Franchised Business, or a controlling or non-controlling interest in the Franchised Business. However, this requirement can be waived if the buyer meets the standards for new or renewing franchises as specified by the franchisor and complies with the transfer conditions outlined in your franchise agreement [p.147, p.196].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the Franchise Agreement on any grounds available by law [p.230]. Additionally, the franchisor has the right to terminate if you fail to comply with any lawful provision of the Franchise Agreement and do not cure such failure within a reasonable period, which cannot exceed 30 days [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a transferee, you need to demonstrate sufficient equity capital to operate each Franchised Business. This condition is presumed if your net worth equals or exceeds the current franchisee's net worth at the time of transfer, excluding the value of the Franchised Business [p.178]. However, specific details on minimum net worth or liquid capital requirements are not provided in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchises, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.34, p.33]. However, your Protected Area will be mutually agreed upon and defined in Attachment B to the franchise agreement [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that the Operations Manager must attend and successfully complete. This includes food safety training. Additionally, the franchisor may require other training as deemed necessary, which the Operations Manager must also satisfactorily complete. The franchisor reserves the right to determine the adequacy of any pre-opening services provided, but failure to meet this standard must be reported in writing within 30 days after opening [p.232].
How many franchised outlets are there, and how many have closed or been terminated?
According to the FDD excerpt on page [p.50], there are four (4) franchised outlets owned and operated by an affiliate of the company pursuant to a franchise agreement. However, the number of closed or terminated franchises is not specified in the provided excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information under certain conditions. According to [p.47], the franchisor is permitted to give actual records of existing outlets if requested by a prospective franchisee. Additionally, [p.10] indicates that historical revenue and expense information may be shared with prospective franchisees for the benefit of the franchise system as a whole. However, this information does not include costs of sales, operating expenses, or other expenses that the franchisee will incur [p.49].
What am I restricted to selling, and where must I buy supplies?
You must purchase from the franchisor's designated or approved suppliers most of what is needed to construct, operate, and maintain your Layne's Chicken Fingers Restaurant. This includes furniture, equipment (such as POS systems), ingredients, signage, and more [p.21, p.96]. However, you are not restricted to selling only certain items; the franchise agreement may prohibit operating a similar business during the term of the franchise [p.150] and there may be other restrictions on what you can sell [p.3].