Slim Chickens
Slim Chickens offers quick-service restaurants featuring chicken tenders, wings, salads, and sandwiches. Known for its chicken products and dipping sauces, it operates in the fast-food industry with initial investments ranging from $1,228,900 to $4,515,000.
About Slim Chickens
Slim Chickens is an American fast-casual restaurant chain which specializes in chicken tenders, wings, sandwiches, salads, wraps, chicken and waffles, and other items. It was founded in 2003 by Greg Smart and Tom Gordon.
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Slim Chickens 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 Slim Chickens franchise ranges from $1,228,900 to $4,466,000. This includes an initial franchise fee of $30,000 and covers other costs such as real estate, equipment, and training [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on whether a Development Agreement was previously signed. If no prior agreement exists, it is $30,000; if there is a previous Development Agreement, it is $15,000 [p.12, p.18]. This fee is uniformly imposed and not refundable [p.12, p.123] unless specific pre-opening conditions are met as outlined in the agreement [p.196, p.245].
What are the ongoing royalty and advertising fees?
Ongoing royalty fees are a recurring, non-refundable fee payable weekly based on the Gross Sales of the preceding week [p.223]. Additionally, franchisees must pay an advertising contribution as specified in the agreement, which is higher than what is contained in the FDD and will be 10 years in duration [p.122].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. However, regarding renewal, failure to comply with conditions for renewal will be interpreted as a conclusive election not to renew [p.123]. If you do qualify and elect to renew, the terms for renewal will be governed by Franchisor's then-current form of renewal franchise agreement [p.122], which may include new royalty fees, advertising fees, competitive protection, and Standards.
Can I sell or transfer my franchise, and what does that require?
According to [p.147], the franchisor may set limits on the number of restaurants you can own and operate, prohibit sale-leaseback transactions, or condition transfers. You must obtain the franchisor's consent for any transfer, which they cannot unreasonably withhold if certain conditions are met before the effective date of the transfer. Additionally, you need to sign a release upon renewal or transfer of your franchise, as specified in [p.231].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law [p.239].
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. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution controlled by the company [p.232, p.37, p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides on-site opening assistance for the first three Slim Chickens Restaurants through a minimum of 14 business days (pre- and post-opening) with a certified training team, covering procedures and personnel training [p.132]. For subsequent restaurants opened by the franchisee or its affiliates, the franchisee must obtain certification for their own opening support team and provide their own opening support [p.36]. The franchisor's Slim Chickens Training Program covers various operational aspects and is conducted at a designated site [p.36].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that there are 192 total restaurants. However, this number includes various exclusions such as non-standard prototype locations, military bases, college campus facilities, and other non-traditional locations. There is no specific mention of the number of franchised outlets that have closed or been terminated in the provided excerpts. [p.54]
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the one provided in Item 19. If you are purchasing an existing outlet, they may provide actual records of that outlet's performance upon request [p.55]. However, for new locations, no such financial projections or information will be given unless specifically requested and substantiated by actual records from an existing outlet [p.53, p.55].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the food and beverage products that the franchisor has designated for offer and sale in Slim Chickens Restaurants, and you may not serve any other items without prior written consent. Additionally, you must purchase all inventory and supplies exclusively from approved suppliers designated or approved by the franchisor [p.21, p.44].