The food industry is one of the biggest industries in the world, especially the fast-food industry, with many big brands in operation.
Every day, there are new brands offering franchise opportunities along with these big and successful brands.
Chicken Guy is one of the new concepts in the industry started by Guy Fieri and Robert Earl, focusing on chicken-based fast foods.
They are extremely new to the market, but they are growing rapidly because their owners are famous and focus on a niche area in the fast-food industry.
If you are looking to own one of their branches to expand your franchise portfolio or get started with the industry, this could be the perfect opportunity.
We will examine Chicken Guy’s franchise business and see whether it’s worth it or not.
About Chicken Guy
Chicken Guy is a fast-casual restaurant chain that specializes in chicken tenders and sandwiches.
The chain was founded by Guy Fieri and Robert Earl in 2018 with the aim to serve all-natural chicken tenders in different seasonings and sauces.
All of the sauces that they have are natural and hand-made that you can pair with their tenders or sandwiches.
The restaurant offers a fun and casual dining experience with a bright and lively atmosphere.
Having Robert Earl as one of the founders who founded Planet Hollywood makes them even more popular and their food tastier.
Chicken Guy has several locations across the United States and is continuing to expand.
Their focus on fresh ingredients and unique sauces sets them apart from other fast-casual chicken restaurants.
Chicken Guy History
Chicken Guy was founded in 2018 by celebrity chef Guy Fieri and restaurateur Robert Earl. Fieri is known for his television shows on Food Network and his love for bold flavors.
Earl is the founder of Planet Hollywood and is a veteran in the restaurant industry.
The duo’s fame and experience quickly made the brand famous all across the United States. They opened their Chicken Guy location in Disney Springs, Florida.
Right after their opening, they quickly gained popularity for their unique sauces and chicken tenders.
The success of the first location led to the opening of several more restaurants across the United States.
Knowing how franchising can help businesses, Chicken Guy released their franchise disclosure document (FDD) and began offering franchising opportunities in 2020.
They have expanded to over 10 locations since, and they have even more plans to expand faster and bigger.
Franchise Model Table
| Initial Investment | $767,500-$1.7 million |
| Franchise | YES |
| Franchising Since | 2020 |
| Franchise-Fee | $20,000 |
| Royalty-Fee | 6% |
| Liquidity | $50,000 |
| Estimated Outlets | 12 |
Also Read: How Much Does A Papa John’s Franchise Owner Make?
How Much Does It Cost To Open A Chicken Guy Franchise?
The expected total cost to open a Chicken Guy franchise varies between $767,500 and $1.7 million, including the franchise fee of $20,000.
This initial investment number includes every kind of cost, such as the equipment, application fee, opening costs, leasehold costs, and others.
Chicken Guy has two types of stores, traditional and non-traditional, and the fees also vary between these two types.
Once you open the store, there are also some ongoing fees like the royalty fee. You have to pay 6% of your gross sales to Chicken Guy every month as part of your franchise agreement.
This royalty is the same both for traditional and non-traditional store types.
Chicken Guy Franchise Requirements
The first requirement is the size of the store. Chicken Guy requires their traditional stores to be between 70 to 110 sqm and non-traditional restaurants to be between 180 to 220 sqm.
Ideally, they also expect you to make site improvements worth $300 to $1,200 per square foot.
These numbers are not minimum or maximum numbers, and they might differ, but these are the numbers Chicken Guy favors the most in the applications.
In addition, Chicken Guy also requires the franchisees to pay a $50,000 development fee and a $5,000 deposit fee after approval.
There are no extra net worth or specific liquidity requirements for the franchisees.
If you can pay the development fee and have the financing for the expected initial investment, that is enough.
Chicken Guy Profit & Revenue
Chicken Guy is a fairly new business with not a lot of stores open, and they are also a private company.
Because of these reasons, their financial statements are not available to the public, and there isn’t much information to make a suggestion.
That’s why we don’t know how much Chicken Guy is making annually in total or per store.
Chicken Guy Franchise Training and Support
Chicken Guy provides an extensive training program both for the managers and for the other employees in the branch.
In total, the initial training program is for 126 hours, with 18 of them in a classroom and the rest being on-the-job training.
The classroom training focuses on the theoretical information on running a business, and the on-the-job training teaches you the practicalities of serving customers and managing the restaurant.
The franchisor provides support both before and after the opening of the franchise branch.
Before opening, they help you with site selection, site development, and the overall preparation of the store.
After opening, they give you guidelines for local marketing efforts, give access to proprietary software, and other similar operational support.
Chicken Guy Franchise Terms of Agreement and Renewal
The initial term when you sign the agreement for the first time will be for ten years.
This means that your agreement will give you the right to operate the Chicken Guy brand for ten years under the conditions you agreed upon.
At the end of this period, you might have the option to renew if the franchisor is happy with you and you agree to the new terms and conditions.
If you are approved for renewal, and the franchisor agrees to renew it, you can renew it for another ten years.
Before you sign the renewal agreement, you will have to pay a renewal fee of $10,000 to the franchisor, similar to the franchise fee.
The new renewal could come in the form of a new agreement or an addition to the initial agreement depending on the situation.
Chicken Guy Franchise Obligations and Restrictions
The franchisee is obligated to either be present in the daily operation of the business or designate a qualified individual.
This individual will serve as the operating principle and has to be approved by the franchisor and go through the necessary training.
The franchisee or the selected qualified individual must spend most of their working time in the operations of the branch and be present.
You are also restricted to purchasing or leasing items only from the franchisor or the suppliers that the franchisor approves. You can’t go to other suppliers to purchase or lease these items.
Also, you have to use the proprietary products only in accordance with how it’s described in the franchise manual.
Lastly, you are restricted to using the franchised area and the restaurant solely for the operations of the Chicken Guy restaurant and nothing else.
Chicken Guy Franchise Financial Assistance
Chicken Guy doesn’t provide any kind of direct or indirect financial assistance to prospective franchisees.
They will not help you with any kind of financial investment you are going to make, whether that’s the initial investment or the lease requirements. You are obligated to find all the necessary funding by yourself.
However, if you find any third-party sources, they will support you in getting the necessary financial loan from that third-party source.
The necessary financial funding could come in as a franchise loan, small business loan, or any other kind of similar loan from a financial institution or a bank.
Chicken Guy Comparison
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Smashburger | $40,000 | 5.5& | $941,860-$2 million |
| Five Guys | $25,000 | 6% | $306,200-$716,250 |
| Chicken Guy | $20,000 | 6% | $767,500-$1.7 million |
You May Also Read: How Much Does A Domino’s Franchise Owner Make?
Conclusion
Chicken Guy is a fast-growing franchise chain founded by two very experienced people in the restaurant and food industry.
They managed to open over ten stores in less than 5 years, and they have been growing rapidly since they started to franchise.
They also offer a lot of support for the new franchisees, and they don’t require a lot of things from them.
If you have the financing to cover the initial fees and the initial investment, applying for a Chicken Guy franchise could be a lucrative business opportunity.
There is no doubt that they will keep getting bigger every year and have stores all over the United States.
FAQ
Who is the CEO of Chicken Guy?
Robert Earl is the current CEO of Chicken Guy. He is also the co-founder of the brand, and he’s been in that spot since the founding of the company in 2018.
Can I fail with a Chicken Guy franchise?
Even though Chicken Guy was founded by two famous restauranters, it doesn’t mean that their franchise branches are fail-proof.
If you can’t manage a restaurant well, you will fail, just like owning any other business.
How much does it cost to open a Chicken Guy franchise?
The expected initial investment, including both traditional and non-traditional restaurants, is between $767,500 and $1.7 million.
This fee includes everything from the franchise fee, which is $20,000, to the additional funds you require.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.