Layne’s Chicken FingersFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Layne’s Chicken Fingers franchise requires a total initial investment of $452K – $1.1M, including a $45K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.8M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $452K – $1.1M
- 77th pct Service Resta…
- Avg gross sales
- $1.8M
- 51st pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 19
- 46th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
Franchised units fell from 15 to 5 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $452K – $1.1M including a $45K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.8M).
- Verdict A (Top Quintile) with a risk score of 22/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Layne’s Chicken Franchising, LLC
- Predecessor
- other than as disclosed in the following paragraph
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Garrett Reed
- CEO experience
- 2017 yrs
- Years in role or industry
- Incorporated in
- TX
- HQ
- 10601 Clarence Dr, Suite 265, Frisco, Texas, 75034
- Auditor
- HM&M Group, LLC
- Audited financials
- Franchisor revenue
- $680K
- vs $1.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- LKC has offered franchises in any line of business
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate quick-service chicken finger restaurants featuring a limited menu (chicken fingers, sides, beverages) with emphasis on speed and quality. Day-to-day operations include food prep, front-of-house service, inventory management, and staff scheduling in a compact, efficient footprint designed for high throughput and delivery optimization.
- CEO
- Garrett Reed
- Founded
- 2017
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing · 21 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Lease Deposit and Rent (three months) | $8K | $50K | |
| Utility Deposits | $5K | $5K | |
| Government Licenses and Permits | $2K | $10K | |
| Blueprints and Plans | $10K | $50K | |
| Leasehold Improvements | $150K | $400K | |
| Signage and Graphics (interior and exterior) | $7K | $70K | |
| Furniture and Fixtures | $10K | $30K | |
| POS | $8K | $15K | |
| Computer Hardware and Software | $4K | $8K | |
| Kitchen Equipment and Small Wares | $150K | $250K | |
| Professional Services | $5K | $8K | |
| Initial Inventory | $8K | $15K | |
| Small Wares, Uniforms, and Initial Suppliers | $7K | $15K | |
| Insurance | $5K | $15K | |
| Travel and Related Expenses While Training | $2K | $5K | |
| Initial Opening Assistance | $3K | $5K | |
| Grand Opening Advertising and Promotion | $10K | $25K | |
| Additional Funds | $15K | $30K | |
| First Franchise (Excluding Initial Franchise Fee) | $407K | $1.0M | |
| Total initial investment | $943K | $2.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$275K
15.0% margin
Unlevered ROIC
36%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $452K – $1.1M
- Below avg, review vs category
- Liquid capital req'd
- $15K – $30K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $6K |
| Training fee | $500 |
| Transfer fee | $23K |
| Renewal fee | $10K |
| Inventory (initial) | $15K – $30K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.8M
- Per unit, per year
- Median gross sales
- $1.8M
- Item 19 type
- Historical
- Sample size
- 10 units
- vs category median 28 · small
- Range (low → high)
- $773K→$2.4M
- Cohort dispersion (min → max)
- Quartile band
- $1.4M→$2.0M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Layne’s Chicken Fingers Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 19
- Opened
- 5
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 79%
- vs corporate-owned
- Net growth (yr3)
- +50.0%
- Net unit change last year
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 3
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $5.0M
- Median loan
- $830K
- average
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Layne’s Chicken Fingers's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage brand with explosive growth, undisclosed unit-level profitability, and opaque financial transparency creates moderate-to-high risk despite strong average unit volumes.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $80,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · HM&M Group, LLC
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 22 / 100 rating
- 01MEDNet income not disclosed in Item 19 — impossible to verify actual profitability against $451.5K-$1.05M investment
- 02MINORExplosive 50% YoY unit growth with only 19 locations raises sustainability concerns — rapid expansion often precedes contraction
- 03MINORHigh investment range ($598.5K spread) suggests inconsistent build-out costs or unclear capex requirements
- 04MINOR5% royalty on $1.83M average revenue = $91.5K/year in fees — profitability claims cannot be validated
- 05HIGHNo going concern status is unusual for a young franchise and may indicate recent legal/financial restructuring
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | principal business office city |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 84 hrs
- Field support
- 56 hrs/yr
- On-site visits per year
- Site selection
- franchisor
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Layne’s Chicken Fingers · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Layne’s Chicken Fingers franchise?
The total investment to open a Layne’s Chicken Fingers franchise ranges from $452K – $1.1M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Layne’s Chicken Fingers franchise owners earn?
According to Item 19 of the Layne’s Chicken Fingers FDD, the average gross sales per unit is $1.8M. The median is $1.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Layne’s Chicken Fingers's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Layne’s Chicken Fingers (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 Layne’s Chicken Fingers franchise locations are there?
As of their most recent FDD filing, Layne’s Chicken Fingers has 19 total units in the United States, including 15 franchised units and 4 company-owned units. 5 new units were opened in the latest reporting year.
Is Layne’s Chicken Fingers a good franchise to buy?
FranchiseVerdict rates Layne’s Chicken Fingers as a A-grade franchise with a risk score of 22 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.