In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Chicken Salad Chick franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Chicken Salad Chick franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Chicken Salad Chick outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Chicken Salad Chick franchise opportunity

Section V – Presentation and analysis of Chicken Salad Chick’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross sales for the 158 franchised and 64 affiliate-owned (separately stated) Chicken Salad Chick restaurants in the United States that were open and operating during all of 2023

• 2023 average gross sales, cost of goods sold, payroll & related costs, operating expenses, non-controllable expenses, occupancy costs, local marketing expense, brand fund fee, EBITDA, and royalty fees for the 64 affiliate-owned Chicken Salad Chick restaurants in the United States that were open and operating during all of 2023

Section VI – Key ratios, comparables, computations, and analyses for the Chicken Salad Chick franchise opportunity (exclusive content for Platinum subscribers)

Section I – Chicken Salad Chick Franchise Costs

• Chicken Salad Chick franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchisee Fee:  $50,000
• Grand Opening Marketing Fee:  $10,000
• Rent (1 month) and Security Deposit:  $6,000 to $11,000
• Leasehold Improvements:  $400,000 to $500,000
• Furniture, Fixtures, and Equipment:  $175,000 to $225,000
• Décor Package (wall art, table coverings, decals, window treatments):  $15,000 to $20,000
• Branded Merchandise:  $9,000 to $10,000
• Inventory:  $12,000 to $13,000
• Signage:  $12,000 to $25,000
• Drive-Thru Package (drive-thru only):  $20,000 to $30,000
• Computer Equipment and Software:  $20,000 to $30,000
• Permits and Licenses:  $500 to $2,500
• Insurance (6 months):  $2,500 to $3,500
• Training (transportation, lodging, etc. for 3 people):  $5,000 to $9,000
• Other Deposits and Prepaid Expenses:  $0 to $5,500
• Professional Fees (attorney, architect, etc.):  $10,000 to $20,000
• Additional Funds for 3 Months:  $20,000 to $30,000
• Total Chicken Salad Chick Franchise Costs (all locations other than drive-thru locations):  $747,000 to $964,500
• Total Chicken Salad Chick Franchise Costs (drive-thru locations only):  $767,000 to $994,500

Section II – Chicken Salad Chick’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Chicken Salad Chick’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Franchise Fee:  $50,000 for first location; $45,000 for additional locations
• Continuing Royalty:  5% of Gross Sales (but at least $600 on the 5th and 20th of each month)
• Advertising Contribution:  currently, 2% of Gross Sales

Section III – Number of Franchised and Company-Owned Chicken Salad Chick Outlets

Franchised

2021

• Outlets at the Start of the Year:  131
• Outlets at the End of the Year:  153
• Net Change:  +22

2022

• Outlets at the Start of the Year:  153
• Outlets at the End of the Year:  159
• Net Change:  +6

2023

• Outlets at the Start of the Year:  159
• Outlets at the End of the Year:  180
• Net Change:  +21

Company-Owned

2021

• Outlets at the Start of the Year:  45
• Outlets at the End of the Year:  52
• Net Change:  +7

2022

• Outlets at the Start of the Year:  52
• Outlets at the End of the Year:  66
• Net Change:  +12

2023

• Outlets at the Start of the Year:  66
• Outlets at the End of the Year:  75
• Net Change:  +9

Section IV – News Updates on the Chicken Salad Chick Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Chicken Salad Chick Franchise (Item 19, 2024 FDD)

• This historical financial performance representation discloses the average, median, and high/low annual Gross Sales of 158 franchised (Part 1) and 64 affiliate-owned (Part 2) Chicken Salad Chick Restaurants in the United States that were open and operating during all of 2023.

• All affiliate-owned Chicken Salad Chick Restaurants disclosed in this Item 19 are owned and operated by Chicken Salad Chick’s affiliate SSRG II, LLC.

• This financial performance representation does not include the results of 35 Chicken Salad Chick Restaurants:

• (1) 22 franchised Restaurants and 10 affiliate-owned Restaurants that opened during 2023 (and therefore were not open for the full calendar year);
• (2) 1 franchised Restaurant that permanently closed during 2023 (and therefore was not open for the full calendar year);
• (3) 1 affiliate-owned Restaurant that permanently closed during 2023 (and therefore was not open for the full calendar year); and
• (4) 1 affiliate-owned Restaurant operated on a college campus in Alabama that is not open year-round.

• Besides the annual Gross Sales of the 158 franchised and 64 affiliate-owned Chicken Salad Chick Restaurants in the United States that were open and operating during all of 2023, this financial performance representation contains (immediately following Part 2) partial operating financial statements for 2023 with average information in various categories for the affiliate-owned and operated Chicken Salad Chick Restaurants.

• All of the Chicken Salad Chick Restaurants (both franchised and affiliate-owned) whose information is included in this Item 19 are both substantially similar to one another in terms of products and services offered and substantially similar to the Chicken Salad Chick Restaurants for which Chicken Salad Chick is offering franchises in the disclosure document.

• Chicken Salad Chick obtained the Gross Sales information for franchised Restaurants from sales reports submitted by franchisees.

• “Gross Sales” is defined as the amount of all sales of food, beverages, and services by a Restaurant, including off-premises or on-premises catering sales, less applicable sales tax. All coupons and discounts are deducted and netted out from Gross Sales.

• Chicken Salad Chick obtained the detailed Restaurant-level operating information for affiliate-owned Restaurants from SSRG II, LLC. Chicken Salad Chick has not independently audited any information submitted to it.

• The actual average, median, and high/low annual Gross Sales volumes reported below in Parts 1 and 2 do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.

Part 1 – Franchised Restaurants (Sales)

2023 Results for 158 Franchised Restaurants Open During All of 2023

• Number of Restaurants in Range:  158
• 2023 Average Unit Volume:  $1,486,807
• 2023 Highest Sales:  $2,518,616
• 2023 Lowest Sales:  $593,047
• Number and Percentage of Restaurants Exceeding Average:  72 / 46%
• 2023 Median Unit Volume:  $1,451,986

Part 2 – Affiliate-Owned Restaurants (Sales)

2023 Results for 64 Affiliate-Owned Restaurants Open During all of 2023

• Number of Restaurants in Range:  64
• 2023 Average Unit Volume:  $1,466,213
• 2023 Highest Sales:  $2,543,283
• 2023 Lowest Sales:  $698,513
• Number and Percentage of Restaurants Exceeding Average:  33 / 52%
• 2023 Median Unit Volume:  $1,483,042

Part 3 – Average Partial Operating Financial Statement for Affiliate-Owned and Operated Restaurants

All 64 Affiliate-Owned and Operated Restaurants

Total Gross Sales:  $1,466,213 (100.0%)

Prime Costs

• Total Cost of Goods Sold:  $471,254 (32.1%)
• Total Payroll & Related:  $416,602 (28.4%)
• Total Prime Costs:  $887,855 (60.6%)

Total Operating Expenses:  $94,927 (6.5%)

Total Non-Controllable Expenses:  $72,046 (4.9%)

Total Occupancy Costs:  $127,752 (8.7%)

Local Marketing Expense:  $38,073 (2.6%)

Brand Fund Fee:  $29,324 (2.0%)

EBITDA:  $216,235 (14.7%)

Royalty Fee:  $73,311 (5.0%)

• Total Cost of Goods Sold: This includes the cost of all food, beverages, delivery services, and paper goods used in the Restaurants. A franchisee in a new market with less than 3 open Restaurants could expect that its Cost of Goods Sold will be higher, likely ranging between an additional 1% and 2% of total sales. Some proprietary items might not be stocked by Chicken Salad Chick’s local distributor, causing an increase in freight costs.

• Total Payroll & Related: This includes all salaries, hourly wages, bonuses, payroll taxes, and benefits paid at each affiliate-owned Restaurant. The payroll for each affiliate-owned Restaurant includes a required minimum of 2 salaried managers. Chicken Salad Chick does not require franchisees, as owner-operators, to have 2 salaried managers on-site at all times. Payroll costs will vary and depend on, among other things, number of salaried managers, pay rates, and geographic region.

• Total Prime Costs: This is the sum of Cost of Goods Sold plus Payroll & Related.

• Total Operating Expenses: These include disposables, restaurant supplies, travel expenses, cleaning supplies, linen, uniforms, pest control, delivery expense, music, technology, permits, licenses, office supplies, postage, equipment rental, trash removal, and professional services.

• Total Non-Controllable Expenses: These include bank fees, phone and internet, utilities, and repairs and maintenance.

• Total Occupancy Costs: These include base rent, common area maintenance, property taxes, and insurance.

• Local Marketing Expense: Franchisees currently must spend only 1% of Gross Sales on local marketing expense. This number represents the spend by affiliate-owned Restaurants.

• Brand Fund Fee: Each affiliate-owned Restaurant contributes to the Brand Fund the same 2% of Gross Sales contributed by franchisees.

• The EBITDA calculation uses the following formula: Total Gross Sales minus (i) Total Prime Costs, (ii) Total Operating Expenses, (iii) Total Non-Controllable Expenses, (iv) Total Occupancy Costs, and (v) Local Marketing Expense and Brand Fund Fee = EBITDA.

• Royalty Fee: Affiliate-owned Restaurants do not pay Royalties. This line-item represents the Royalty Fee of 5% that franchisees would pay had they operated these Restaurants under Chicken Salad Chick’s Franchise Agreement and reached the particular Gross Sales levels..

• Some Chicken Salad Chick Restaurants have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Chicken Salad Chick Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️