Chicken Strips and Dips Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Chicken Strips and Dips is a quick-service franchise serving chicken strips paired with dipping sauces and sides. Franchisees run the restaurants, managing food prep, staffing, and counter service.
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). FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $38K – $116K
- 2nd pct Service Resta…
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 1
- 3rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $38K – $116K including a $5K franchise fee, 6.0% ongoing royalty.
- RETURNSAudited consolidated financial statements of MTY Franchising USA, Inc. (parent of franchisor Kahala Franchising, L.L.C.), in thousands of US dollars, for fiscal years ended November 30, 2025 and 2024. Revenue is reported as a single consolidated line of $604,239K (FY2025) and $597,538K (FY2024). Audit issued by PricewaterhouseCoopers LLP, Montreal, dated February 5, 2026.
- RISKVerdict F (Weakest tier), verdict score 28/100 (higher is better).
- LEGAL18 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
Corporate structure & franchisor financials
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- Kahala Brands, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- Predecessor
- The Extreme Pita Franchising USA, Inc.
- Prior franchisor entity
- 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
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2008
- FDD year
- 2026
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 88% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $20K
- Top 40% of category vs category
- Franchise fee
- $5K – $5K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · 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 | $3K |
| Inventory (initial) | $1K – $2K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Chicken Strips and Dips did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Chicken Strips and Dips unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
116%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Audited consolidated financial statements of MTY Franchising USA, Inc. (parent of franchisor Kahala Franchising, L.L.C.), in thousands of US dollars, for fiscal years ended November 30, 2025 and 2024. Revenue is reported as a single consolidated line of $604,239K (FY2025) and $597,538K (FY2024). Audit issued by PricewaterhouseCoopers LLP, Montreal, dated February 5, 2026.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System shrank 83.3% over 3 years — 0 closures. Ask existing franchisees about local market conditions.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Chicken Strips and Dips Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- 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 (3-yr)
- -83.3%
- Net unit change over 3 years
- 3-yr CAGR
- -83.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
18 distinct cases disclosed including concluded and active litigation involving Kahala Franchising and predecessor/affiliate entities (Extreme Pita, Famous Dave's, sweetFrog, Wetzel's Pretzels, Papa Murphy's, VI BrandCo, Blimpie, Maui Wowi, BF Acquisition Holdings/Triune). Active fiscal year 2025 suits: 3 suits filed by Kahala against franchisees for breach of contract and trademark infringement.
Largest disclosed settlement: $4,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 28 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| 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 | 90 days |
| Termination groundsℹ | 14 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | county and state where the Franchised Business is located |
| Jury trial waiver | Yes |
| Governing law | State where franchised business is located |
| Litigation count | 18 |
View Item 3 litigation summary
18 distinct cases disclosed including concluded and active litigation involving Kahala Franchising and predecessor/affiliate entities (Extreme Pita, Famous Dave's, sweetFrog, Wetzel's Pretzels, Papa Murphy's, VI BrandCo, Blimpie, Maui Wowi, BF Acquisition Holdings/Triune). Active fiscal year 2025 suits: 3 suits filed by Kahala against franchisees for breach of contract and trademark infringement.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 24 hrs
- Training location
- Online / KTEC Scottsdale AZ / training store in Arizona
- Ongoing training
- Optional
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects with franchisor approval
- Franchisor financing
- Offered
- Item 10
- 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 Item 19 in the Chicken Strips and Dips FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Chicken Strips and Dips FDD and qualifies whose outlets they describe.
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 verdict score of 28 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.