About Tex's Chicken & Burgers Franchise
Tex's Chicken & Burgers is a quick service restaurant franchise specializing in halal fried chicken, burgers, and other food products served in a fast casual setting.
Newly franchising in 2025, the brand focuses on fresh ingredients and halal preparation, targeting customers seeking quality quick service food that meets their dietary and cultural preferences.
The initial franchise fee is $30,000.
Tex's Chicken & Burgers Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales | National brand fund |
| Total Investment Range | $516,500 – $865,500 | Includes build-out, inventory, working capital |
The investment range of $517K–$866K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $30,000 | $30,000 |
| Lease, Utility and Security Deposit (one month) (Note 2) | $10,000 | $12,000 |
| Design & Architectural Fees | $10,000 | $20,000 |
| Leasehold Improvements (Note 3) | $200,000 | $350,000 |
| Grand Opening Marketing Campaign (Note 4) | $10,000 | $15,000 |
| Furniture Fixtures and Equipment (Note 5) | $175,000 | $295,000 |
| Opening Inventory/ Grand Opening Box (Note 6) | $15,000 | $25,000 |
| Professional Fees (Note 7) | $7,000 | $15,000 |
| Point-of-Sale/Back Office System | $3,500 | $7,500 |
| Signage (Note 8) | $20,000 | $30,000 |
| Insurance (Note 9) | $4,000 | $12,000 |
| Licenses and Permits (Note 10) | $5,000 | $10,000 |
| Travel, Lodging and Meals for Initial Training (Note 11) | $7,000 | $14,000 |
| Additional Funds (3 months) (Note 13) | $20,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 75% of the then-current initial franchise fee if to a third-party transferee; 50% of the then-current initial franchise fee if to an existing Tex’s Chicken & Burgers franchisee; $2,500 if Franchisee is transferring control to a new Managing Owner |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Technology Fee | $100 weekly |
| Audit Fee | Cost of audit |
| Interest | 18% per annum from due date |
| Liquidated Damages | The average Royalty Fees and Brand Marketing Fund Contributions earned by us for the last 12 months (or shorter period, if your Franchised Business has been in operation less than 12 months), multiplied by 36 or the number of months remaining in the term, whichever is less. |
| Quality Assurance Inspection Fee | Actual costs incurred by us. |
| Late Fee | The greater of: (i) 5% of the amount due or (ii) $100 |
| Collections | Actual fees, costs, and expenses |
| Insufficient Funds Fee | $250, or maximum fee allowed by law |
| Supplier Review Fee | Actual fees, costs, and expenses incurred by us |
| Management Service Fee | Our expenses plus 10% of Gross Sales |
| Mystery Shopper Fee | Up to $250 per shop |
| Relocation Fee | 40% of the then-current initial franchise fee |
| Cooperative Advertising | As established by the co-op |
| Additional Training Fees | $450 per day per trainer |
| Refurbishment Fee | 10% of the cost to refurbish the premises of the Franchised Business |
| Conference Fee | $500 per person |
| Indemnification | Will vary |
| Insurance Reimbursement | Our costs plus a 10% administrative fee |
| Non-Compliance Fees | $500 per day of non-compliance, plus our costs and expenses, including travel and lodging for a Quality Assurance Inspection if necessary |
| System Modifications | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximate two-week period |
| Classroom Training | 40 |
| On-the-Job Training | 40 |
| Training Location | Queens, NY, virtually or another location we designate |
| Additional Training | Franchisor may require additional on-site or virtual training for newly hired managers and personnel, remedial training due to non-compliance, re-training for repeating programs, or optional training programs. Franchisee is responsible for a per diem training charge of $450 per trainer per day, plus travel, meals, and lodging expenses for trainers. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | the lesser of 50,000 people or 3-mile radius around your Approved Location |
| Description | Once an Approved Location is identified and approved, the franchisor will designate an area around the site as the Designated Territory, determined at its sole discretion using mapping services or statistical sources. During the Initial Term and any Renewal Terms, the franchisor and its affiliates will not establish or license another Tex’s Chicken & Burgers franchise within this Designated Territory, provided the franchisee is in compliance with their obligations. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | two additional 5-year terms |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Renewal Conditions | To renew, franchisee must be in compliance with the Franchise Agreement, provide 90-180 days written notice, sign the then-current franchise agreement (which may differ materially), sign a general release, pay the renewal fee, and meet all other renewal requirements. Owners must also be in compliance and personally guarantee the new agreement. |
| Transfer Fee | 75% of the then-current initial franchise fee (third-party transferee); 50% of the then-current initial franchise fee (existing franchisee); $2,500 (transferring control to new Managing Owner) |
| Transfer Conditions | Requires franchisor's prior written consent. Conditions include 30 days prior written notice, franchisee and owners not in default, compliance with all agreements, transferee agreeing to be bound by terms, transferee owners personally guaranteeing, general release signed, assets transferred in approved form, transferee and managers completing initial training and licensing, waiver of franchisor's right of first refusal, and payment of the transfer fee. |
| Termination for Cause | Franchisor can terminate for various reasons, including insolvency, abandonment, material misrepresentation, legal violations (persisting 10 days after notice), repeated breaches, criminal conviction, failure to pay monies owed (more than 5 days past due), and imminent danger to public health or safety. Some defaults allow a 10-30 day cure period, while others result in automatic termination. |
| Non-Compete Period | During the Initial Term and all Renewal Terms; 24 months after termination or expiration for the franchisee; 2 years after relationship ends for individuals. |
| Non-Compete Details | Franchisee and owners must not engage in any competitive business during the term and for 24 months after termination/expiration within the Designated Territory, a 50-mile radius around the Designated Territory, or a 25-mile radius of any other Tex’s Chicken & Burgers business. This includes owning, managing, funding, or being employed by a competitive business, or diverting customers. Individuals (e.g., General Manager) are subject to a 2-year post-term non-compete within a 25-mile radius of any Tex's Chicken & Burgers business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or its designated managing shareholder, member, or partner (Managing Owner) must be personally responsible for the management and overall supervision of the Franchised Business. The Managing Owner must complete initial training, be approved by the franchisor, and own at least 25% of the equity and ownership interests. While personal participation in day-to-day management is recommended, a General Manager can be hired to oversee on-site operations, provided they meet franchisor standards, complete training, and sign a Nondisclosure, Non-Competition and Confidentiality Agreement. Each Approved Location must be managed and supervised on-site by either a Managing Owner or General Manager. |
| Required Suppliers | Franchisee must purchase or lease certain source-restricted products that meet franchisor specifications and/or are from an approved or designated supplier, which may include the franchisor or its affiliates. The franchisor may designate a supplier as exclusive for Approved Products and Services. |
| Supply Restrictions | Franchisor has exclusive suppliers for halal food items, poultry, beef, ingredients, and other items. Franchisee may only offer and sell Approved Products and Services and must use only authorized products, supplies, equipment, technology systems, décor items, and uniforms. Any unapproved products or suppliers require prior written approval from the franchisor. |
| Franchisor Revenue from Suppliers | Franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. Franchisor reserves the right to institute and expand rebate programs in the future. However, the franchisor states it has never earned revenue from approved suppliers based on its franchisees’ purchases. |
Tex's Chicken & Burgers Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Tex's Chicken & Burgers 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.
Tex's Chicken & Burgers System Growth
Tex's Chicken & Burgers currently operates 0 franchised locations and 52 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 3 | 0 | 38 |
| 2023 | 5 | 0 | 43 |
| 2024 | 9 | 0 | 52 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: California, Connecticut, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by Divine, Blalock, Martin & Sellari, LLC for year ending December 31.
Tex's Chicken & Burgers Franchise — FAQ
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