TKK Fried Chicken
TKK Fried Chicken offers quick-service Asian-style crispy fried chicken and sweet potato fries through standard, non-traditional, or TKK Express franchises. Known for its unique flavor profile, it operates in the fast-food restaurant industry.
TKK Fried Chicken franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening one franchise can vary depending on the type of unit. For a standard or non-traditional unit, the total initial investment ranges from $322,500 to $406,500 if it is your first franchise under a multi-unit agreement [p.1]. For a TKK Express unit, the range is from $242,000 to $288,500 for the first unit [p.1].
What is the initial franchise fee?
The initial franchise fee is $37,500, but it can be lower in some cases where the franchisee has multiple locations or operates a non-traditional unit. The fee is either $20,000 or $25,000 in those situations [p.71]. This fee is not refundable under any circumstances [p.11, p.103].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on the franchisee's gross sales, billed monthly and recognized as revenue over the term of the franchise agreement. As for advertising fees, there was a requirement to pay a marketing fee equal to 2% of gross sales each month during the franchise term, but no such fees were collected in 2024 [p.72, p.31].
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. Regarding renewal, you agree to pay the current renewal fee if you choose to renew the franchise, which cannot exceed the greater of $10,000 or 25% of the then-current initial franchise fee [p.103].
Can I sell or transfer my franchise, and what does that require?
You can transfer ownership of your franchise, but it requires obtaining prior written consent from the franchisor [p.180]. Additionally, if you are transferring assets, you must transfer all rights under the franchise agreements and ensure the transferee signs the current franchise agreement [p.155]. This isn't specified in the excerpts for selling products or services; however, you must adhere to the franchisor's specifications and cannot deviate without written consent [p.42].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure within a reasonable time, which cannot exceed 30 days [p.186]. Additionally, the franchisor can terminate the agreement if you do not open the restaurant for business within nine months after the date of your franchise agreement [p.33].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific financial qualification requirements such as net worth or liquid capital for franchisees. However, it does mention that the franchisor's financial condition is reflected in its financial statements [p.4], and if the most recent financial statements are unaudited and show a net worth of less than $100,000, the franchisor may require escrow of initial investment funds until obligations are fulfilled [p.181].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under either the single unit [p.36] or multi-unit agreements [p.37]. You may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands that are controlled by the franchisor.
What training and ongoing support does the franchisor provide?
The franchisor provides initial assistance and support for launching the franchise business [p.30], as well as operational guidance through newsletters, internet postings, and other written materials [p.31]. Additionally, they offer regular operational reviews and may require on-site guidance if requested by the franchisee [p.95].
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 can provide actual records of existing outlets if you are purchasing one, but they cannot make representations about future financial performance without a reasonable basis. Additionally, they may supplement the information provided in Item 19 under certain conditions. [p.48]
What am I restricted to selling, and where must I buy supplies?
You are required to purchase most of your supplies from Arms Global Inc., as specified in Item 5. This includes breading, seasoning, frying powders, marinating sauce, special wrap mix, cups, and other items designated by the franchisor. Regarding what you can sell, this is not fully detailed in the provided excerpts; however, restrictions on sales are mentioned in Item 16 [p.26].