Franchise Deep Dive: Golden Chick’s Franchise Costs, Fees, Profit and Data

Company history

Golden Chick is a fast-casual chicken franchise famous for its chicken tenders. Its story began in Central Texas in the late 1960s when the concept was created by a former employee of a chicken franchise who believed there had to be a better way to run a franchise system.

The brand soon attracted franchise inquiries with its unique chicken menu and, by the time the founder sold the chain in 1982, it had already grown to 39 restaurants. In 1989, Golden Fried Chicken was purchased by an investment group and has since experienced steady growth with new restaurants opening throughout the region, bringing the chain-wide total to over 210 stores.

In 1993, the company introduced enhancements to the Golden Fried Chicken menu and restaurant appearance and Golden Chick was born. As of 1996, all new stores were called Golden Chick.

Golden Chick originated in the late 1960s when a former employee of another chicken franchise sought a better way to cook chicken and manage franchises. Starting with one restaurant in central Texas, it expanded to 39 franchise locations by 1982. In 1992, the brand changed its name to Golden Chick.

Growth and expansion

Today, the franchise has steadily grown to over 210 stores, and over 20 new locations are planned to open in 2024. In 2023, the brand announced an expansion strategy involving exploring markets beyond Texas, including Puerto Rico, Las Vegas, and into more Eastern markets.

Golden Chick’s opportunity is well-suited to industry newcomers as well as franchising experts, according to the company. Because Golden Chick restaurants have broad consumer appeal, there is wide-open opportunity for new territories.

Additionally, franchisees are able to invest in a single restaurant or multiple restaurants over an agreed-upon time frame. Multiple restaurants may be suitable for franchisees with adequate liquidity for startup costs and the ability to qualify for financing for the balance of the project.

Franchise concepts

There are three franchise concepts to choose from:

• Freestanding, Ground-Up Location: These brand-new locations are built from the ground-up in locations that are chosen to attract customers. They are built to exact specifications and are designed to last for decades.

• Freestanding Conversion: These freestanding franchises are established by converting existing buildings with drive-thrus into Golden Chick restaurants.

• Prototypical End Cap Restaurant: These smaller locations are built into existing spaces in locations like small strip centers supplying us with approximately 2,200 square feet. Like Freestanding Conversion franchises, they don’t typically require comprehensive construction, but unlike both of the previous options, they’re built into a larger retail complex and don’t stand on their own.

According to Golden Chick's 2023 Franchise Disclosure Document (FDD), the average gross revenue for franchised and company-operated prototypical restaurants was $1,355,743.

The cost to open a Golden Chick is estimated to be between $823,450 and $1,379,400, depending on the type of model franchisees choose to open.

• For Free-Standing, Ground-Up Locations: $1,193,550 - $1,913,300

• For Free-Standing Conversion: $833,450 - $1,390,500

• For Prototypical End-Cap Locations: $823,450 - $1,379,400

The franchise fee for each franchisee’s first Golden Chick location is $30,000. The brand encourages 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.

• Mark Parmerlee — CEO

• Brian Loescher — President (Golden Franchising Corporation)

• Michael Jensen — President (Golden Operating Corporation)

• Monty Whitehurst — Senior Vice President, Development

• Scott Stevenson — Vice President, Development and Construction

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