Chicken Salad Chick Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($50,000 )

‍The initial franchise fee for the first Chicken Salad Chick restaurant is $50,000. For subsequent locations, the fee is $45,000. Additionally, a grand opening marketing fee of $10,000 is required for each location.

Royalty (5% of Gross Sales)

‍Franchisees are required to pay a continuing royalty fee of 5% of Gross Sales, with a minimum of $600. This fee is due semi-monthly on the 5th and 20th of each month.

Advertising (2% of Gross Sales)

‍Franchisees are required to contribute to the Brand Fund. While the franchisor has the right to require up to 4% of Gross Sales as a Brand Fund contribution, currently, franchisees are required to pay 2% of Gross Sales. Additionally, franchisees have a local advertising requirement where they must spend, as a minimum, 1% of their monthly Gross Sales on local advertising.

Opening a Chicken Salad Chick franchise involves various expenditures, from initial fees to setup costs. The total estimated initial investment for a non-Drive-Thru Chicken Salad Chick location ranges between $744,500 and $960,500. For those interested in a Drive-Thru option, the investment is estimated to be between $764,300 and $990,500. The following table provides a detailed breakdown of these costs:

When it comes to ensuring the success of their franchisees, Chicken Salad Chick offers a comprehensive training program. This program is designed not just to uphold the brand's reputation but also to equip franchisees with the necessary skills and knowledge to run their restaurant efficiently. It includes on-the-job instruction on:

- Basic business procedures
- Equipment operation and maintenance
- Scheduling
- Basic accounting principles
- Computer operations
- Advertising and promotion
- Purchasing procedures
- Food preparation, safety, presentation, and quality
- Food and beverage inventory and cost control
- Customer service
- Janitorial service
- General maintenance

Before they can commence their business operations, they must attend and successfully complete this training program. The program is scheduled to run for a minimum of two weeks.

Franchisees of Chicken Salad Chick are not granted an exclusive territory. They are given the right to own and operate a Chicken Salad Chick restaurant at a specific location, and they cannot conduct the business of their restaurant at any other site.

The Franchise Agreement does not allow franchisees to use other channels of distribution, including the internet. Furthermore, the agreement does not provide any options, rights of first refusal, or similar rights to acquire additional franchises.

If a franchisee does not have a designated site for the restaurant when signing the Franchise Agreement, they must search for that site within a geographic area specified in the agreement, and the site must be approved by the franchisor.

The franchise must be overseen either by the franchisee or by an Operating Partner.This Operating Partner should be an owner with at least a 10% interest in the franchisee entity.

The brand emphasizes that the Operating Partner should be dedicated to the operation of the restaurant and may not be involved in, operate, or manage any other business without prior written approval from Chicken Salad Chick.

Furthermore, the restaurant must have a dedicated General Manager present every day. If the Operating Partner isn't operating the restaurant on-site each day, this General Manager fills that role.This General Manager doesn't need to have an equity interest in the franchisee or the restaurant.

However, all management personnel, including this General Manager, are required to complete Chicken Salad Chick's training program and sign confidentiality agreements.