With today’s increased costs of starting a new business from the ground up, entrepreneurs everywhere are looking to get the most for their investment. For some, that means deciding against following the traditional small business model and choosing to open a franchise with an existing brand. When selecting a brand to franchise with, one of the first things these entrepreneurs will consider is the franchise fee structure that each available opportunity utilizes. At Golden Chick, we offer a franchise investment cost that gives our franchisees a better chance of successfully getting their new quick-service restaurant (QSR) off the ground without rising above their financial capabilities.
Golden Chick has been serving hot, delicious chicken to a loyal customer base for over 50 years. During that time, we’ve learned what it takes to build a chicken franchise that offers strong returns for those who choose to invest in it. With this knowledge and experience in hand, Golden Chick has set up an investment framework that puts the initial franchise costs and fees directly back into our franchisees’ locations.
What Is Our Investment Cost Structure?
The Golden Chick team identifies a few key areas that a franchisee’s investment is targeted to address when setting up their new QSR business. These include the initial franchisee training cost, as well as computer and point-of-sale systems, signage, menu boards, and the furniture, fixtures, and equipment at each of their restaurant locations. Our investment cost structure is designed to limit the amount of unexpected costs that pop up, both during the buildup to each grand opening and throughout our franchisees’ daily operations.
The franchise fee for each franchisee’s first Golden Chick location is $30,000. We encourage our entrepreneurs to take advantage of our multi-unit opportunities by lowering the fee for each additional location to $18,000, which is a 40% discount from the original franchise fee.
At Golden Chick, we aim to help our franchisees retain as much of their profits as possible, which is why our franchise royalty rate of 4% is the lowest of any franchise in the chicken restaurant industry. We also put your investment to work directly for you, with our 3% advertising fee being almost exclusively in the local market that the Golden Chick franchise is located.
Why Our Fees Are the Best in the QSR Franchising Industry
One of the main aspects that make our franchising costs more favorable for entrepreneurs compared to other brands in the chicken QSR industry is that we offer three franchise concepts, each with different costs. In so doing, we allow our Golden Chick franchisees to develop a restaurant that best suits the needs of their community and their budget. The concepts we support are:
● Freestanding, ground-up locations – Brand-new constructions that fit our exact specifications and are designed to last for decades. We have found them to be highly effective in attracting customers, while their total cost typically ranges from $895,890 – $1,414,500.
● Freestanding conversions – Existing buildings with drive-thrus that can be converted into Golden Chick restaurants at a lower cost compared to ground-up locations. These usually cost our investors between $438,450 – $957,500 (depending on whether there is usable equipment, such as a walk-in cooler/freezer, hoods, ice machine, etc.)
● End cap restaurants – Approximately 2,000- 2,200 square feet endcap with drive-thru built into existing strip centers and other larger retail complexes. We estimate these initial costs to be about $470,450 – $946,400.
Golden Chick’s franchise fee structure compares more favorably against other well-known chicken QSR brands, as our franchisees often save as much as 2% to 5% on their bottom line. It’s no surprise that so many entrepreneurs who partner with us to franchise with Golden Chick are able to leverage these savings into greater returns on investment and find that we offer one of the best franchising opportunities around!
Want to learn more about the costs of opening a Golden Chick franchise? Contact our team today, and we’ll send you a copy of our Franchise Disclosure Document so you can gain more insight on franchising with us!