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FranchiseVerdict

How Much Does a Daddy’s Chicken Shack Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$169K – $826K

Franchise Fee

$125K

Royalty

50.0%

Ad Fund

N/A

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Daddy’s Chicken Shack is $125K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Daddy’s Chicken Shack franchise requires a total investment of $169K – $826K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $25K to $40K.

Ongoing Costs

Beyond the initial investment, Daddy’s Chicken Shack franchisees pay ongoing fees. The royalty fee is 50.0% of gross sales (Split of fees collected from RD Territory Franchisees). There is also a technology fee of $150.

Net Worth & Liquid Capital Requirements

Daddy’s Chicken Shack requires working capital of $25K – $40K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Daddy’s Chicken Shack does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Daddy’s Chicken Shack?

SBA Loans Issued

6

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Daddy’s Chicken Shack has 6 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current Daddy’s Chicken Shack franchise owners

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