About Darbar's Chicken Franchise
Darbar's Chicken is a quick service restaurant franchise specializing in flavorful, South Asian inspired chicken dishes.
The brand brings bold spices and authentic recipes to a fast casual dining format, standing out in the crowded chicken restaurant segment with its unique flavor profile.
Darbar's Chicken began franchising in 2024.
Darbar's Chicken Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,900 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue (National Advertising and Development Fund); 1% of Gross Revenues (Local Advertising); $3,000 - $6,000 (Grand Opening Advertising) | National brand fund |
| Total Investment Range | $270,900 – $432,400 | Includes build-out, inventory, working capital |
The investment range of $271K–$432K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Revenue) and marketing fee (2% of Gross Revenue (National Advertising and Development Fund); 1% of Gross Revenues (Local Advertising); $3,000 - $6,000 (Grand Opening Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,900 | $39,900 |
| Traveling and Living Expenses while Training | $2,500 | $5,000 |
| Furniture, Fixtures, and Equipment | $20,000 | $35,000 |
| Real Property Rent and Security Deposits | $11,250 | $30,000 |
| Leasehold Improvements | $50,000 | $100,000 |
| TV, Cameras and other Supplies | $70,000 | $100,000 |
| Initial Inventory | $15,000 | $20,000 |
| Signage | $5,000 | $20,000 |
| Grand Opening Advertising | $3,000 | $6,000 |
| Licenses, Permits, and Certifications | $1,000 | $2,000 |
| Insurance (3 Months) | $750 | $1,000 |
| Professional Fees | $2,500 | $3,500 |
| Additional Funds (3 months) | $50,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | 25% of the then-current franchise fee |
| Technology Fee | Approximately $300 per month (plus transaction costs) |
| Audit Fee | Cost of inspection plus the amount of the underpayment plus interest from the date such amount was due until received by Franchisor, paid at the rate of the lesser of 1.5% per month or the highest commercial contract interest rate allowed by law |
| Interest | Lesser of 1.5% per month or the highest commercial contract interest rate allowed by law |
| National Franchise Convention Fee | $500 |
| Maintenance and Refurbishing of Business | You must reimburse our expenses |
| Insufficient Funds | $75 |
| Relocation Assistance | Our actual cost |
| Retraining Fee | Our then current standard rates or $250 per trainee per day, whichever is greater |
| Additional Training or Assistance | Currently, we charge $250 per day per person plus expenses for training at our location, and $250 per day per person plus expenses for training plus travel, lodging, and meal expenses incurred by our trainer for training at your location. |
| Product and Service Purchases | Actual amount incurred |
| Testing of Products or Approval of new Suppliers | Not to exceed $1,000 |
| Customer Service Fee | Actual amount of our cost or reimbursement |
| E-mail Maintenance Fee | None at this time; we reserve the right to charge up to $50/month |
| Insurance | You must reimburse our costs |
| De-Identification Reimbursement Fee | Actual costs incurred |
| Management Fee | $250 per person per day (plus other costs and expenses) |
| Indemnification | Will vary |
| Cost of Enforcement | All costs, including reasonable attorneys’ fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 51 Hours Classroom, 56 Hours On-the-Job |
| Classroom Training | 51 hours |
| On-the-Job Training | 56 hours |
| Training Location | Affiliate restaurant in Queens, NY or another franchisor training center |
| Additional Training | Ongoing training programs, seminars, or webinars may be required, at a cost of $250 per person per day if at the franchisor's location, or $250 per person per day plus travel, lodging, and meal expenses if at the franchisee's location. Not more than two sessions per calendar year. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Normally a population size of 500,000 people or a 3-mile radius around your outlet, whichever is less. |
| Description | The territory will be a specific geographic region defined and approved by radius, zip codes, natural, or political boundaries as set forth in the Franchise Agreement. The franchisor will not establish company-owned or franchised outlets selling similar goods/services under the same/similar trademarks within this exclusive territory. Continuation of rights does not depend on sales volume or market penetration. The franchisor reserves the right to use other distribution channels (Internet, catalog sales, telemarketing) within the territory, but normally directs inquiries to the franchisee's outlet. Franchisees may not solicit orders outside their territory but may accept them, and may engage in internet/social media marketing per guidelines that may extend outside the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive 10-year terms |
| Renewal Fee | 25% of the then-current franchise fee |
| Renewal Conditions | Full compliance with the Franchise Agreement, capital expenditures for System uniformity, satisfaction of all monetary obligations, no default, timely written notice of intent to renew, signing of then-current franchise agreement (which may have materially different terms), compliance with current qualifications and training requirements, and signing a general release (subject to state law). |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisor's prior written approval is required. Conditions include: compliance with right of first refusal, all obligations paid, franchisee/transferring owners sign general release, transferee meets franchisor's standards, transferee and owners sign then-current franchise agreement, transferee signs general release, provision of all transfer-related contracts, payment of transfer fee, transferee/owners agree to be personally bound, transferee obtains third-party consents, franchisee/equity owners sign non-competition agreement, and transferee completes initial training. |
| Termination for Cause | Franchisor may terminate without opportunity to cure for reasons such as failure to establish/open business, failure to complete training, failure to maintain licenses, material misrepresentation, felony conviction, unauthorized use of trade secrets/marks, abandonment for 5+ days, unauthorized transfer, understating payments by 2%+ on 2+ occasions, insolvency, repeated failure to submit reports/pay fees, health/safety violations, or default under other agreements. For other breaches, a cure period (5, 10, or 30 days depending on the default) is provided. |
| Non-Compete Period | During the term of the franchise and for 2 years after termination or expiration. |
| Non-Compete Details | During the term, franchisee, owners, officers, directors, executives, managers, professional staff, and employees are prohibited from diverting business to a competitive business or causing injury to Marks/System, or owning/working for a competitive business. Post-termination, for 2 years, they may not offer competitive business services within a 25-mile radius of any Darbar’s Chicken & Ribs outlet or franchisor-owned business, or solicit/influence customers/associates to compete or terminate relationships with the franchisor. Subject to applicable state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Either the Franchisee or its on-site Designated Manager must devote sufficient efforts to the management of the day-to-day operations of the Franchised Business, but not less than forty (40) hours per week. The franchisor retains the right to accept or reject any proposed Designated Manager. If the franchisee is an entity, its Designated Manager is not required to own an equity interest in the franchisee. Owners with 5% or greater interest must personally guarantee obligations. |
| Required Suppliers | Franchisees must purchase signature items (custom packaging, poultry, poultry seasoning) exclusively from the franchisor. Other items like advertising material, computer hardware/software, POS system, furniture, fixtures, equipment, and general inventory/supplies must be purchased from franchisor-designated or approved vendors, or meet franchisor specifications. Insurance must be obtained per franchisor specifications. |
| Supply Restrictions | The franchisor is the sole approved supplier for signature items. For other items, franchisees must use approved suppliers or suppliers meeting franchisor specifications. The franchisor does not maintain written criteria for approving suppliers, but allows franchisees to propose alternative suppliers, charging up to $1,000 for testing. Approval depends on product quality, supplier's ability to provide sufficient quantity, timely delivery, good customer service, financial soundness, and adequate liability insurance. Approval can be revoked with written notice. |
| Franchisor Revenue from Suppliers | The franchisor does not currently derive revenue or other material consideration from required purchases or leases by franchisees, and did not in the last fiscal year ending December 31, 2023. However, designated suppliers may make payments to the franchisor from franchisee purchases in the future. The affiliate does not earn revenue from franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any franchisee's note, lease, or obligation. |
Darbar's Chicken Franchise Earnings — Item 19
Darbar's Chicken 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.
Darbar's Chicken Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Darbar's Chicken System Growth
Darbar's Chicken 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 |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: CA, CT, FL, KY, HI, NE, IL, NY, IN, NC, ME, ND, MD, RI, MI, SD, MN, TX, SC, VA, UT, WA, WI
Franchisor Financials (Item 21)
Audited by SMITH, BUZZI & ASSOCIATES, LLC. for year ending December 31.
Darbar's Chicken Franchise — FAQ
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