Five Star Chicken is a popular fast-food chain that has been serving delicious and mouth-watering fried chicken for years. The franchise model of Five Star Chicken has been successful in many countries around the world, and the company is expanding rapidly. If you are considering opening a Five Star Chicken franchise, it is important to understand the franchise agreement. In this article, we will discuss the Five Star Chicken franchise agreement and its key components.
1. Franchise Fee
The franchise fee is the initial fee paid by the franchisee to the franchisor. The fee covers the cost of the franchise rights, training, and support. The franchise fee for Five Star Chicken varies depending on the location and size of the franchise. It is important to note that the franchise fee is non-refundable.
2. Royalty Fees
Royalty fees are ongoing fees paid by the franchisee to the franchisor. These fees are usually a percentage of the franchisee`s gross sales and cover ongoing support and assistance from the franchisor. The royalty fee for Five Star Chicken is generally around 5-6% of the gross sales.
3. Advertising Fees
Advertising fees are fees paid by the franchisee to the franchisor to cover the cost of advertising and marketing. The advertising fee for Five Star Chicken is usually around 2-3% of the gross sales.
4. Training and Support
Five Star Chicken provides comprehensive training and support to its franchisees. This includes initial training at the company`s training center, ongoing training programs, and assistance with site selection and store design. The franchisor also provides ongoing support through a dedicated team of professionals.
5. Franchise Term
The franchise term is the length of time that the franchise agreement is in effect. The franchise term for Five Star Chicken is generally around 10-15 years.
In conclusion, the Five Star Chicken franchise agreement is a comprehensive agreement that outlines the terms and conditions of the franchise relationship. It is important to carefully review the agreement before signing to ensure that you understand the obligations and responsibilities of both parties. With its delicious food and strong brand reputation, a Five Star Chicken franchise can be a great investment opportunity.