Chicken Strips and DipsFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Chicken Strips and Dips franchise requires a total initial investment of $38K – $116K, including a $5K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $38K – $116K
- 1st pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 1
- 2nd pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 67% year-over-year. Investigate why units are closing.
18 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $38K – $116K including a $5K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- 18 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- MTY Franchising USA, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- CEO experience
- 14 yrs
- Years in role or industry
- Incorporated in
- AZ
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $604.2M
- vs $597.5M prior year
Overview
About
Chicken Strips and Dips franchisees operate quick-service restaurants focused on chicken strip entrees paired with dipping sauce accompaniments. Day-to-day operations involve food preparation, point-of-sale management, inventory control, and customer service in what appears to be a limited-menu fast-casual format. The business model relies on franchisee execution across food cost management, labor scheduling, and local marketing within an unprotected territory.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2008
- FDD year
- 2026
- States available
- 1
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $5K | $5K |
| Working capital (3–6 mo) | $20K | $20K |
| Equipment, build-out, other | $13K | $91K |
| Total initial investment | $38K | $116K |
Source: Chicken Strips and Dips 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $38K – $116K
- Better than avg vs category
- Liquid capital req'd
- $20K – $20K
- Better than avg vs category
- Franchise fee
- $4K – $5K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $75 |
| Training fee | $2K |
| Transfer fee | $3K |
| Renewal fee | $50 |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Chicken Strips and Dips Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- N/A
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 200% (!)
- Closures exceed total units. See FDD Item 20
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -66.7%
- Net unit change last year
- 3-yr CAGR
- -83.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 33.3%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This franchise exhibits HIGH RISK characteristics including near-total unit collapse (down 66.7%), undisclosed financial performance, extensive litigation history across affiliated brands, no going concern viability, and lack of transparent financial disclosure.
Litigation (Item 3)
Two concluded litigation matters involving franchisor predecessors: (1) Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - alleging FIPA violations, misrepresentation, and unregistered broker activity; settled March 11, 2016 for $20,000; dismissed March 16, 2016. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - breach of contract and related claims; Kahala prevailed at bench trial June 2016, awarded $205,000 in attorneys' fees; parties settled June 19, 2017 with Kahala repurchasing territory for $75,000 and forgiving $130,000 in remaining damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 100 / 100 rating
- 01MEDCatastrophic unit decline of 66.7% year-over-year with only 1 unit remaining signals system collapse
- 02MEDNo Item 19 financial disclosures (Avg Revenue and Net Income not disclosed) prevents validation of profitability claims
- 03HIGHExtensive litigation history across multiple affiliated brands and the franchisor itself, including FIPA violations and registration/disclosure issues, indicates systemic compliance problems
- 04HIGHGoing Concern status is FALSE, suggesting potential financial instability of franchisor
- 05MINORNo protected territory combined with minimal franchise fee ($5,000) suggests low franchisor investment in franchisee success
- 06MINORUnspecified surcharge mechanism ('maximum $10/week') lacks transparency and creates cost uncertainty
- 07HIGHActive litigation as plaintiff against former franchisees suggests adversarial franchisee relationships and potential disputes
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | county and state where the Franchised Business is located |
| Jury trial waiver | Yes |
| Litigation count | 18 |
View Item 3 litigation summary
Two concluded litigation matters involving franchisor predecessors: (1) Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - alleging FIPA violations, misrepresentation, and unregistered broker activity; settled March 11, 2016 for $20,000; dismissed March 16, 2016. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - breach of contract and related claims; Kahala prevailed at bench trial June 2016, awarded $205,000 in attorneys' fees; parties settled June 19, 2017 with Kahala repurchasing territory for $75,000 and forgiving $130,000 in remaining damages.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 32 hrs
- Training location
- On-site and corporate
- Time to open
- 9 mo
- From signing to launch
- POS system
- Focus or Micros
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Focus or Micros
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chicken Strips and Dips · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chicken Strips and Dips franchise?
The total investment to open a Chicken Strips and Dips franchise ranges from $38K – $116K, with an initial franchise fee of $5K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chicken Strips and Dips franchise owners earn?
Chicken Strips and Dips does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Chicken Strips and Dips's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chicken Strips and Dips (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Chicken Strips and Dips franchise locations are there?
As of their most recent FDD filing, Chicken Strips and Dips has 1 total units in the United States, including 1 franchised units and 0 company-owned units.
Is Chicken Strips and Dips a good franchise to buy?
FranchiseVerdict rates Chicken Strips and Dips as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.