The Budlong Hot Chicken
The Budlong Hot Chicken offers spicy fried chicken and related food items in quick-service restaurants. Known for bold flavors, it operates in the fast-casual dining sector.
The Budlong Hot Chicken franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a The Budlong® franchised business ranges from $134,650 to $828,000. This includes a mandatory payment of $35,000 to $38,000 to the franchisor or its affiliates [p.2].
What is the initial franchise fee?
The initial franchise fee varies based on whether it's for the first unit or additional units. For the first unit, the fee is $35,000 [p.15, p.182]. For each additional unit to be developed under an area development agreement, the fee is $25,000 [p.79, p.15, p.182]. This isn't specified in the excerpts for a single franchise without an area development agreement.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is as listed in Exhibit 'A-3' [p.80]. For advertising, it's recommended to plan for spending between $5,000 to $10,000 on grand opening marketing, though this may vary [p.23].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
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 reasons [p.6(g)]. Therefore, you cannot freely sell or transfer your franchise without the franchisor's approval [p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.64]. Additionally, if you do not meet development deadlines but demonstrate a good faith effort, the franchisor may still terminate your agreement and you would lose rights to undeveloped units and forfeit related payments [p.39]. The franchisor also cannot cancel a franchise without reasonable cause as per Virginia Retail Franchising Act [p.66, p.207].
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, company-owned outlets, and other channels of distribution or competitive brands that the franchisor controls [p.56, p.36]. However, the franchisor will not establish another traditional franchise or company-owned physical unit using the trademark within your territory [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that must be completed by the operating principal and other owners/managers before opening the franchise business, with successful completion defined as knowledge and competency demonstration [p.34]. The program can be updated without notice for changes in materials or methods [p.35], and additional training may be required at a cost of $250 per person per day if deemed necessary by the franchisor [p.36]. This isn't specified in the excerpts regarding ongoing support beyond initial training.
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 does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, either orally or in writing [p.50]. However, if you are purchasing an existing outlet, they may provide actual records of that specific outlet's performance [p.50].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling specific products but may face restrictions on operating a similar business during the term of the franchise. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which could be more expensive than other options [p.4].