About The Red Chickz Franchise
The Red Chickz is a fast casual restaurant franchise serving halal, all natural, hand breaded Nashville hot chicken made with 100% hormone and antibiotic free poultry.
Franchising since 2022, the brand offers a menu of sandwiches, wings, tenders, shrimp, and sides including coleslaw, potato wedges, cheese curds, and pickle slices, all served with their signature "comeback sauce." The initial franchise fee is $40,000.
Each restaurant offers dine in, takeout, delivery, and catering, giving owners multiple channels to reach customers who crave bold, spicy chicken prepared with clean, quality ingredients.
The Red Chickz Franchise Cost & Fees
Minimum Investment
$425K
Average Investment
$654K
Maximum Investment
$883K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Revenues; Currently 1% of Gross Revenues | National brand fund |
| Total Investment Range | $424,700 – $883,200 | Includes build-out, inventory, working capital |
The investment range of $425K–$883K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenues) and marketing fee (Up to 3% of Gross Revenues; Currently 1% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $40,000 | $40,000 |
| Leasehold Improvements (Note 2) | $177,000 | $425,000 |
| Design & Architectural Fees (Note 2) | $10,500 | $32,000 |
| Grand Opening Advertising (Note 3) | $25,000 | $25,000 |
| Licenses & Professional Services (Note 4) | $1,000 | $10,000 |
| Professional Fees | $1,000 | $5,000 |
| Insurance (Quarterly) (Note 5) | $3,000 | $7,000 |
| Travel and Living Expenses while Training (Note 6) | $14,000 | $21,000 |
| Rent (first 3 months) & Security Deposits (Note 7) | $5,000 | $15,000 |
| Initial Inventory (Note 8) | $8,200 | $15,000 |
| Lease, Utility & Deposits | $2,500 | $5,000 |
| Furniture, Fixtures & Equipment (Note 9) | $11,500 | $29,500 |
| Interior and Exterior Signage | $10,500 | $25,000 |
| Equipment and Smallware | $80,000 | $140,000 |
| POS/Back Off System (Note 10) | $9,000 | $21,000 |
| Miscellaneous (Uniforms & Office Supplies) | $7,500 | $10,700 |
| Additional Funds (first 3 months) (Note 11) | $19,000 | $57,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 75% of the then-current initial franchise fee (new owner); $5,000 (to existing owners); 50% of the then-current initial franchise fee (existing franchisee) |
| Renewal Fee | 50% of the then-current initial franchise fee |
| Technology Fee | One time set up fee of $1,075 plus an ongoing fee of up to $125 per week. Currently $60/week |
| Audit Fee | Cost of audit and inspection, any understated amounts, interest and any related accounting and legal expenses |
| Initial Training (for additional individuals) | $1,000 per person per week |
| Local Marketing | Up to 3% of Gross Revenues; Currently 2% of Gross Revenues or $1,000 per month, whichever is greater |
| Ongoing Training Assistance | $500 per day, per trainer, plus all travel and related expenses. |
| Additional Training Assistance | The actual cost of the training plus expenses |
| Mystery Shops | Up to $250 per month |
| Quality Assurance | Up to $500 per quarter |
| Convention Fee | Currently $0 (Franchisee pays travel fees) |
| Relocation Fee ("Offset Fee") | 50% of the then-current initial franchise fee |
| System Modifications | All reasonable costs and expenses associated with system modification |
| Insufficient Funds | Currently $100 |
| Insurance | Amount of unpaid premiums plus expenses for obtaining the policies required |
| Interest | Lesser of 1.5% per month or the highest rate allowed by law on all past due amounts |
| Prohibited Product or Service | $250 per day |
| Unauthorized Advertising Fee | $500 per occurrence or our then-current fee |
| Guest Response and Recovery Management Fee | Our-then current fee; currently, $40 per week |
| Supplier and Product Evaluation Fee | Greater of the actual cost or our designated fee (not to exceed $3,000) |
| Operations Manual Replacement Fee | $500 |
| Temporary Management Assistance | 10% of Gross Revenues plus any travel and lodging expenses |
| Non-Compliance Fee | $500 for each day the default remains uncured |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | two-week training program |
| Classroom Training | 16 |
| On-the-Job Training | 62 |
| Training Location | Carlsbad, California, and, at our discretion, at your Restaurant location. |
| Additional Training | Periodically, you, your managers or employees must attend refresher-training programs to be conducted at our headquarters or another location we designate. Attendance at these programs will be at your expense. You do not have to attend more than one (1) of these programs in any calendar year and these programs will not exceed two (2) days during any calendar year. We may require you to attend system conferences, including annual conferences, and to charge you a fee to attend. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory |
| Exclusive Territory | Yes |
| Territory Size | The Protected Territory will be decided in our sole discretion based on the circumstances, and may be either a specified radius surrounding the restaurant, a geographic area described by zip codes, streets, highways, or other written description. |
| Description | Once we approve your location, a “Protected Territory” will be granted to you. We will not establish or license another to establish a Restaurant within a specified area (your “Protected Territory”), during the term of your Franchise Agreement, with the exception of Restaurants located in Special Venues. Special Venues include enclosed shopping centers, amusement/theme parks, train stations, resorts, mall food courts, airports, sports stadiums/areas, military bases, casinos and entertainment venues. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 50% of the then-current initial franchise fee |
| Renewal Conditions | You shall deliver written notice to Red Dot of your desire to obtain a Successor Franchise Agreement no later than one hundred and eighty (180) days prior to the expiration of the Initial Term; You shall not be in default of any provision of this Agreement, any amendments or successors to this Agreement, or any other agreement between you (or any of your Owners, Guarantors or affiliates) and Red Dot and/or its subsidiaries and affiliates at the time you deliver the notice required under Section 3.2.1 above, or on the date the Initial Term expires; You must not have received more than three (3) written notices of default of this Agreement during the Initial Term, nor more than two (2) such notices during the five years (5) immediately preceding the expiration of the Initial Term; You shall have satisfied all monetary obligations owed by you to Red Dot and Red Dot’s subsidiaries and affiliates; You shall make any renovations and improvements to the Franchised Restaurant as Red Dot deems necessary to modernize, renovate, equip and decorate the Franchised Restaurant to reflect Red Dot’s then-current System standards; You shall execute Red Dot’s then-current form of franchise agreement; You shall execute a general release; You shall comply with Red Dot’s then-current qualification and training requirements; and You shall pay to Red Dot, a successor franchise fee equal to 50% of the then-current initial franchise fee. |
| Transfer Fee | 75% of the then-current initial franchise fee (new owner); $5,000 (to existing owners); 50% of the then-current initial franchise fee (existing franchisee) |
| Transfer Conditions | All of Franchisee’s accrued monetary obligations and all other outstanding obligations to Red Dot and its subsidiaries and affiliates shall have been satisfied; Franchisee is not in default of any provision of this Agreement; The transferor shall have executed a general release; The transferee shall enter into a written assignment; The transferee shall demonstrate to Red Dot’s satisfaction that it meets Red Dot’s educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the Franchised Restaurant; and has adequate financial resources and capital to operate the business; At Red Dot’s option, the transferee shall execute the standard form franchise agreement then being offered to new System franchisees; The transferee, at its expense, shall upgrade the Franchised Restaurant to conform to Red Dot’s then-current standards and specifications; The transferee shall remain liable for all of the obligations to Red Dot in connection with the Franchised Restaurant prior to the effective date of the transfer; The transferee (or its principal) and the transferee's manager shall, at the transferee's expense, complete any training programs then in effect for franchisees. |
| Termination for Cause | We can terminate if you default. Curable defaults include non-payment of fees (10 days), non-submission of reports (5 days), default under other agreements (30 days), and other defaults under the Franchise Agreement (30 days). Non-curable defaults include: failure to timely obtain an approved location and all licenses, permits and approvals; failure to open the Franchised Restaurant timely; failure to complete training; if you file for bankruptcy, seek reorganization, liquidation or dissolution; abandonment of your Restaurant; conviction of felony, repeated defaults even if cured, loss or suspension of your business license, abandonment, trademark misuse, unapproved transfers; termination of other franchise agreements between you and us; and other defaults listed in Section 16.2. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, no involvement in a competing business. After termination or expiration, no involvement in a competing business for 2 years at the Approved Restaurant Location, within a 25-mile radius of the Approved Restaurant Location, or within a 25-mile radius of any other Restaurant (including after assignment). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You, or if you are a corporation, limited liability company or other entity, at least one of your owners (the “Responsible Owner”), must devote his or her full time and effort to the active management and operation of the Franchised Restaurant; possess the authority and responsibility to manage and operate the Franchised Restaurant and to represent and act on your behalf in all dealings with us. The Franchised Restaurant must always be under the direct, full-time, day-to-day supervision of the Responsible Owner or Designated Manager. |
| Required Suppliers | You must purchase certain products from our exclusive designated suppliers. Our affiliate, GSN Distribution, Inc., is the system supplier of The Red Chickz® branded items such as branded paper products, merchandise, and dry goods. We have a purchasing agreement with our designated supplier, Sysco, under which we will receive a rebate of 1.5% of all purchases. You must purchase our designated POS System, Security, and Camera System. |
| Supply Restrictions | You must maintain in sufficient supply, use and sell at all times only the services, items, products, materials, supplies and goods designated by us. You may not deviate from our standards and specifications in any way without obtaining our written consent first, which we are not required to give. You must sell and offer for sale only those items, products and services that we expressly approve for sale in writing. You must offer for sale all programs, products and services we require in the manner and style we require. You must immediately discontinue offering for sale any items, products and/or services we may disapprove in writing at any time. Approximately 80% to 85% of your expenditures for leases and purchases in establishing your franchised Restaurant will be for goods and services that must be purchased from us, our affiliates or an approved or designated supplier. |
| Franchisor Revenue from Suppliers | As of the issuance date of this Disclosure Document, our affiliate GSN derived $15,939.94 on account of required franchisee purchases. We have a purchasing agreement with our designated supplier, Sysco, under which we will receive a rebate of 1.5% of all purchases. We and/or our affiliates reserve the right to derive revenue and other material consideration, including through mark-ups on your purchases, on account of these and other purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or any other obligation. We do not have any agents or affiliates who offer financing directly or indirectly to you. |
The Red Chickz Franchise Earnings — Item 19
The Red Chickz does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
The Red Chickz does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
The Red Chickz Litigation & Risk Flags
Clean Litigation RecordThe Red Chickz has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Red Chickz System Growth
Total Units
3
Franchised
1
Company-Owned
2
The Red Chickz currently operates 1 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 1 |
| 2022 | 1 | 0 | 2 |
| 2023 | 1 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 2 states: CA, FL
Franchisor Financials (Item 21)
Revenue
$45K
Net Income
$-184,513
Total Assets
$133K
Audited by GOLBAR & ASSOCIATES for year ending December 31.
The Red Chickz Franchise — FAQ
The total investment to open a The Red Chickz franchise ranges from $424,700 to $883,200, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Red Chickz charges a royalty fee of 6% of Gross Revenues of gross sales, plus a Up to 3% of Gross Revenues; Currently 1% of Gross Revenues contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Red Chickz Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from The Red Chickz to ensure you have the most up-to-date version.
The Red Chickz does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
The Red Chickz has been franchising since 2022. The FDD shows an investment range of $424,700-$883,200, a 6% of Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $424,700 to $883,200 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from The Red Chickz and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Red Chickz or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com