If you are looking towards opening a Chicken Salad Chick Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. Chicken Salad Chick was founded in 2008 and they began franchising in 2012, about 8 years ago. The current CEO is Scott Deviney and they have their corporate head office at 724 N. Dean Rd. Auburn, AL 36830, USA. Chicken Salad Chick owns and operates 51 franchises in the United States.

Simply Southern Restaurant Group LLC that started as a small takeout restaurant in 2008 has quickly grown throughout the Southeast. Chicken Salad Chick stands as the only Southern-inspired, fast-casual chicken salad restaurant concept in the country.

Kevin and Stacy, their founders, instilled a strong culture of genuine Southern Hospitality that is felt and shared among franchise owners today. When it comes to the company’s food philosophy, Chicken Salad Chick believe that good food brings people together, nourishes their souls, and keeps them coming back for more.

Uniquely positioned in the fast-casual space, The Chick is the only restaurant concept that specializes in fresh, house-made chicken salad. Chicken Salad Chick bring this one-of-a-kind experience to life in their welcoming neighborhood restaurants by using top-quality ingredients and specializing in a wide variety of desserts, sandwiches, soups, and of course chicken salad that’s scratch-prepared daily.

While there are many restaurants that strive to offer a welcoming neighborhood feel, Chicken Salad Chick takes it to the next level. If you have experience in the restaurant industry, you’re probably already aware that it’s not so much the quality of the food as it is the experience that keeps customers coming back.

Not only do Chicken Salad Chick create a one-of-a-kind experience for their guests, but Chicken Salad Chick also provide them with delicious meals that their gracious staff prepares in house every day.

With their simple, time-tested business model and your passion for sharing their food and their culture with your community, Chicken Salad Chick can help you establish an environment where every guest is welcome and comes eagerly to enjoy meals served straight from the heart. Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open Chicken Salad Chick Franchise

  1. Initial Investment: $515,000 – $683,000
  2. Net-worth Requirement: $600,000
  3. Liquid Cash Requirement: $150,000
  4. Ongoing Initial Franchise Fee: $50,000 – $50,000
  5. Ongoing Royalty Fee: 5 percent
  6. Ad Royalty Fee: 2 percent
  7. Cash Required: $150,000
  8. Net Worth Required: $600,000
  9. Total Investment: $515,000 – $683,000
  10. Royalty Type: 5 percent royalty, up to 2 percent national advertising, and 1 percent local marketing (minimum)

1. Initial Franchise Investment: $515,000 – $683,000

Please note that $125,000 is required in available capital if you want to become a franchisee. You need to have a total net worth of $500,000 if you want to become an owner. $242,000 is the minimum that someone opening a location should expect to invest. The high end of the total investment required to open a franchise is $508,200. Before you become an owner, you will owe the franchisor a franchise fee of $60,000. Today, the location count for this franchise has reached 51.

2. Franchise Fee: $50,000

3. Royalty Fee: 5 percent of Gross Sales

Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term and it can be up to 2 percent national advertising, and 1 percent local marketing (minimum)

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

  1. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.

Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Chicken Salad Chick and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.

If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

  1. Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
  2. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  3. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Chicken Salad Chick if it is held liable for claims arising out of your franchise operations.

  1. Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
  2. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date:  Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Chicken Salad Chick if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Chicken Salad Chick is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: This incentive can be negotiated with the company.
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Chicken Salad Chick has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll.
How Much Does It Cost to Open Chicken Salad Chick Franchise?