About Daddy’s Chicken Shack Franchise
Daddy's Chicken Shack is a fast casual restaurant franchise built around hand breaded, Nashville style hot chicken sandwiches and tenders.
The brand stands out in the competitive chicken segment with its scratch made recipes, bold flavor profiles, and a focused menu that keeps kitchen operations efficient.
Daddy's Chicken Shack began franchising in 2021 under Daddy's Chicken Shack Holdings, LLC.
Daddy’s Chicken Shack Franchise Cost & Fees
Minimum Investment
$665K
Average Investment
$779K
Maximum Investment
$894K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 0% of Gross Sales, but if the Brand Development Fund is established, 1% of Gross Sales. | National brand fund |
| Total Investment Range | $664,500 – $893,500 | Includes build-out, inventory, working capital |
The investment range of $665K–$894K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Currently 0% of Gross Sales, but if the Brand Development Fund is established, 1% of Gross Sales.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Training Fee | $5,000 | $5,000 |
| Architectural, Engineer, and Legal Counsel | $17,500 | $34,000 |
| Construction Management | $12,500 | $15,000 |
| Real Estate, Leasehold Improvements, and Construction Costs | $212,000 | $340,000 |
| Signage, Graphics & Interior Décor Items | $18,000 | $21,000 |
| Furnishings, Fixtures and Equipment | $276,000 | $309,000 |
| POS and Technology Systems including Initial Setup | $26,500 | $38,500 |
| Insurance | $1,500 | $2,500 |
| Initial Inventory & Smallwares | $10,500 | $13,500 |
| Grand Opening Marketing | $10,000 | $15,000 |
| Licenses, Fees and Deposits | $5,000 | $15,000 |
| Additional Funds – Initial 3 Months | $25,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | 25% of our then-current initial franchise fee for a new Daddy’s Chicken Shack Restaurant. |
| Technology Fee | Our then-current fee (if we license software to you). |
| Audit Fee | Cost of audit, plus late fees. Payable only if the audit shows that you understated your Gross Sales by more than 2%. |
| Local Advertising | 2% of Gross Sales. |
| Late Payment / Late Report Charges | $100 for each week or part of a week that any payment or report is late, and interest on such amount from the date it was due until paid at the lesser rate of 2% per month or the maximum rate permitted by law. |
| Additional Training/Assistance | Our then current fee for such assistance, which is currently $500 per day, plus expenses. |
| On-Site Evaluation | All reasonable expenses incurred by us in connection with such on-site evaluation for your proposed site. |
| Remodeling | Up to $500,000 upon expiration of every 5-year period following the opening of the Restaurant. |
| Local Marketing Cooperative Fee | Up to 3% of Gross Sales. The amount you pay will offset your obligation to pay for Local Advertising up to 2% of Gross Sales. |
| Annual Convention | Our then-current convention registration fee. |
| Alternative Supplier Review | Our then-current fee not to exceed the reasonable cost of an inspection or actual cost of our test |
| Indemnification Costs | Actual legal damages, fees, costs, and expenses. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 34 hours of pre-training, 137 hours of classroom training, and 139 hours of on-the-job training, totaling 310 hours. |
| Classroom Training | 137 hours |
| On-the-Job Training | 139 hours |
| Training Location | Houston, Texas, or at another location we designate. |
| Additional Training | Franchisee's Principal Trainees may be required to attend refresher courses, seminars, and other training programs, including up to 20 days of refresher programs each year. They may also be required to attend annual or periodic conventions or conferences for up to three days per year. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Description | Franchisee is granted the right to operate one Daddy’s Chicken Shack Restaurant at a physical premises within a Designated Area, as described in Exhibit A of the Franchise Agreement. The franchisor will not operate or license other Daddy's Chicken Shack Restaurants within this Designated Area, but retains the right to sell goods and services through other channels, including the Internet, and through 'Alternative Points of Distribution' (e.g., military bases, institutional outlets, airports, large retail outlets, etc.) within the Designated Area. The franchisor also retains the right to establish other concepts or businesses, even if they offer similar products, within or outside the Designated Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Lesser of 10 years or remaining lease term |
| Renewal Fee | 25% of then-current initial franchise fee |
| Renewal Conditions | No default under existing agreement; provide 12-18 months advance notice; sign then-current franchise agreement (which may have materially different terms, including higher fees and different Designated Area); sign a general release; satisfy all monetary obligations; present evidence of right to possess premises for renewal term (or obtain approval for new premises); remodel Restaurant to current specifications; comply with current qualification and training requirements. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisee must comply with franchisor's then-current transfer policies; provide all requested information; transferor must execute a general release; transferee must agree to be bound as an owner and guarantee obligations (if applicable); new owners must meet franchisor's educational, managerial, and business standards, possess good moral character, business reputation, and credit rating, have aptitude and ability, and adequate financial resources; new Operating Principal and designated General Managers must complete training; if change of control, transferee may need to sign then-current franchise agreement (with potentially different terms, but same remaining term); if change of control, franchisee must upgrade Restaurant to current standards; all monetary obligations must be paid; transferor remains liable for pre-transfer obligations and surviving covenants; transferor must certify provision of true financial information to transferee. |
| Termination for Cause | Franchisor may terminate upon default. Defaults that can be cured (30 days for operational, 5 days for monetary). Defaults that cannot be cured (immediate termination) include: danger to health/safety, bankruptcy, felony conviction, repeated violations, abandonment, fraud, unauthorized transfer, failure to comply with non-compete/confidentiality, lease default, failure to obtain site approval, failure to repair/renovate, failure to complete initial training, unsatisfied judgments, or default under other agreements with franchisor/affiliates. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisee cannot divert business or operate a 'Competitive Business' (fried chicken sandwich/wrap/burrito in quick service/fast casual format) within the Designated Area or two miles of any other Daddy's Chicken Shack. Post-term, for two years, the restriction applies within two miles of the original location or any other existing Daddy's Chicken Shack. Excludes <5% ownership in publicly held corporations. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While personal participation is recommended, it is not required. However, your designated Operating Principal must be approved by the franchisor and must supervise and participate personally in the day-to-day operations. The Operating Principal must have at least five years of management experience in a quick-service restaurant (or two years if the franchisee already operates a Daddy's Chicken Shack), an equity interest of at least 10% in the business (if a legal entity), and live no more than a two-hour drive from the Restaurant. The Operating Principal and General Manager must also complete initial training. |
| Required Suppliers | Franchisee must purchase or lease all equipment, supplies, fixtures, furnishings, décor, signs, goods, and services solely from suppliers approved in writing by the franchisor, unless prior written consent is obtained. |
| Supply Restrictions | The franchisor may appoint itself or an affiliate as the sole or limited supplier for any goods or services. Franchisees must obtain prior written approval for any unapproved products, services, or suppliers, which may involve inspections and testing at the franchisee's or supplier's expense. |
| Franchisor Revenue from Suppliers | Franchisor and its affiliates do not currently receive revenue, rebates, or allowances from franchisee purchases, but may in the future. In fiscal year 2021, franchisor revenue from required purchases was $0, representing 0% of total revenue. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor its affiliates offer, directly or indirectly, any financing arrangements to franchisees, nor do they guarantee franchisee notes, leases, or other obligations. |
Daddy’s Chicken Shack Franchise Earnings — Item 19
Average Revenue
$1.1M
Median Revenue
$1.1M
Revenue Range
$1.1M – $1.1M
Sample Size
1 units
Past financial performance does not guarantee future results. Individual results will vary.
Daddy’s Chicken Shack Litigation & Risk Flags
Clean Litigation RecordDaddy’s Chicken Shack 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.
Daddy’s Chicken Shack System Growth
Total Units
1
Franchised
0
Company-Owned
1
Daddy’s Chicken Shack currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
0
Net Income
$-390,735
Total Assets
$280K
Audited by Citrin Cooperman & Company, LLP for year ending December 31st.
Daddy’s Chicken Shack Franchise — FAQ
The total investment to open a Daddy’s Chicken Shack franchise ranges from $664,500 to $893,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Daddy’s Chicken Shack charges a royalty fee of 6% of Gross Sales of gross sales, plus a Currently 0% of Gross Sales, but if the Brand Development Fund is established, 1% of Gross Sales. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Daddy’s Chicken Shack 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 Daddy’s Chicken Shack to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Daddy’s Chicken Shack franchise owners report average revenue of $1.1M and median revenue of $1.1M. This is based on a sample of 1 units. Past performance does not guarantee future results.
Daddy’s Chicken Shack has been franchising since 2021. The FDD shows an investment range of $664,500-$893,500, a 6% of Gross Sales royalty, and includes an 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 $45,000 and the total investment ranges from $664,500 to $893,500 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 Daddy’s Chicken Shack and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Daddy’s Chicken Shack or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com