Slim Chickens Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$1,599,000

-

$4,389,000

LOCATIONS

136

Emily

Updated

May 2, 2024

Is

Slim Chickens

a franchise?

Yes,
Slim Chickens
currently
accepts
franchise
applications

Established by Greg Smart and Tom Gordon in 2003, Slim Chickens is an American fast-casual restaurant chain headquartered in Fayetteville, Arkansas.

At Slim Chickens, guests can indulge in a menu featuring fresh chicken tenders, wings, salads, sandwiches, wraps, chicken & waffles, and a selection of southern-fried sides such as pickles, okra, and fried mushrooms.

The chain began its franchising journey in 2013, and today, it operates over 200 restaurants, not only in the United States but also internationally.

How many

Slim Chickens

franchises

are there?

In 2022, there were
136
outlets in
the United
States, of which
126
are franchises, and
10
are corporate-owned.

What are the

Slim Chickens

franchise

fees?

Advertising fee

3.00%

Initial Franchise Fee ($30,000)

  • You must pay this fee at the time you sign the Franchise Agreement. If you have not signed a Development Agreement, the fee is $30,000. If you have signed a Development Agreement, the fee is based on the number of Restaurants you will develop under the Development Agreement.

Royalty Fee (5% of Gross Sales)

  • This fee is payable weekly. It's based on the Gross Sales of the Restaurant.

Advertising Fee (3% of Gross Sales)

  • Advertising Fund Contribution: 2% of Gross Sales, payable weekly directly to the franchisor.
  • Local Ad Expenditure/Local Advertising Cooperative Contribution: 1% of Gross Sales, payable weekly. You must spend this amount on approved marketing, but the franchisor may require you to pay some or all of it to an approved Advertising Cooperative for regional or local advertising.
  • Grand Opening Advertising: $10,000, a one-time fee for the grand opening of your Restaurant.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Slim Chickens

franchise?

It costs between
$1,599,000
and
$4,389,000
to start a
Slim Chickens
franchise.

Considering a venture into the fast-casual dining sector? Slim Chickens offers a compelling opportunity with its restaurant model. The initial investment for this model is estimated to range between $1,598,900 to $4,389,000.

For a comprehensive understanding of the associated costs, refer to the detailed breakdown table provided below, which outlines the various expenditures you can anticipate when setting up a Slim Chickens Restaurant.

Type of Expenditure Amount
Initial Franchise Fee $15,000 to $30,000
Real Property / Site Lease / Site Review Fees $45,000 to $1,200,000
Construction/ Building Conversion $700,000 to $1,700,000
Site Work $50,000 to $500,000
Furniture, Fixtures, and Equipment $325,000 to $400,000
Smallwares $18,000 to $21,000
Building Signage and Interior Graphics $45,000 to $75,000
Soft Costs $90,000 to $120,000
Insurance $9,000 to $15,000
Opening Inventory $6,000 to $10,000
Training Costs/Opening Assistance Reimbursement $23,000 to $39,000
POS System/Drive-Thru Components/Menu Boards $80,000 to $140,000
Low voltage/Security/Network Installation $40,000 to $50,000
Security and Utility Deposits $2,500 to $12,000
Business Licenses (excluding beer and wine license) $400 to $2,000
Grand Opening Ad Expenditure $10,000
Total $1,598,900 to $4,389,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Slim Chickens

provide

training

to its

franchisees?

Yes,
Slim Chickens
provides
training

For those eyeing a venture with Slim Chickens, understanding their training and support structure is crucial. Here's a detailed look at what they offer to their franchisees:

Training Program: Slim Chickens offers a comprehensive training program that combines various learning methods, including internet-based, classroom, and on-site training.

Who Needs to Attend: At least two individuals must attend and successfully complete the initial training program. This includes the franchisee's Operating Principal and a full-time General Manager. Additionally, one other approved employee must undergo this training.

Training Content: The training program covers a wide range of topics essential for running the store. This includes sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: The training is provided at Slim Chickens' designated locations, which may include their headquarters. The training includes pre-training videos and workbooks, classroom training, and on-the-job training.

Training Expenses: While Slim Chickens covers the direct training costs, such as instructors and materials, the franchisee is responsible for all indirect training costs. This includes transportation, lodging, meals, and wages for all individuals attending the training.

Does

Slim Chickens

provides

territory

protection?

Franchisees are granted the right to operate one Restaurant at an Approved Location specified in the Franchise Agreement. However, they do not receive an exclusive territory for their operations. This means that while they have a designated location, there is no protection against potential competition from other franchisees or outlets owned by the franchisor within the same area.

The franchisor and its affiliates have the right to establish and operate other outlets, including Special Outlets, within the franchisee's Designated Area. These outlets can be permanent, temporary, or seasonal. Furthermore, they can market their products and services in or draw customers from the Designated Area without any compensation to the franchisee.

Can a

Slim Chickens

franchise

be run as

a passive

investment?

If the franchisee is an individual, they are mandated to be actively and personally involved in the restaurant's operations. However, if the franchisee operates as a corporation, limited liability company, partnership, or other business association, at least one individual equity owner must be the Controlling Owner.

This Controlling Owner should possess full authority to make binding business decisions for the franchisee. The Controlling Owner is defined as someone who owns no less than 51% of all classes of voting stock or membership interests and has the unrestricted right to vote such stock or interests.

Furthermore, the Controlling Owner is expected to be directly involved in the operation and management of the restaurant throughout the franchise agreement's term. If the franchisee wishes to operate under a corporate, limited liability company, or partnership structure, they must adhere to these stipulations.

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