How to Finance a Chicken Salad Chick Franchise: Costs and SBA
By Anthony Cornella
A Chicken Salad Chick franchise loan usually funds a fast-casual restaurant with a total investment the franchisor estimates at $777,000 to $1,033,500, and the brand screens candidates for $750,000 in net worth and $250,000 in liquid assets before financing even comes up. Those numbers frame how much you will borrow, how much cash you will bring and which loan programs fit.
This article covers the franchisor’s published costs and fees, what lenders make of a concept built around fresh-made chicken salad, how SBA 7(a), SBA 504, conventional and equipment loans apply, what the brand’s SBA Franchise Directory listing means and how to prepare a strong request.
US Professional Funding is not affiliated with, sponsored by or endorsed by Chicken Salad Chick; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant before you sign.
Chicken Salad Chick Franchise Loan at a Glance
- Initial franchise fee: $50,000, plus a $10,000 grand opening fee, according to the franchisor’s franchising FAQ.
- Estimated total initial investment: $777,000 to $1,033,500, including the franchise and grand opening fees, depending on restaurant size and location.
- Royalty: 5% of gross sales, paid twice a month.
- Marketing: 2% of gross sales to national advertising and 1% to local marketing.
- Financial qualifications: $750,000 net worth and at least $250,000 in liquid assets.
- Franchise term: 10 years, with up to two additional 10-year terms for owners who meet renewal requirements.
- System size: more than 350 restaurants in 27 states, according to the company.
- SBA Franchise Directory: listed under code S0371, with no additional note.
What Is Chicken Salad Chick?
Chicken Salad Chick began in 2008 in Auburn, Alabama, when Stacy and Kevin Brown opened the first restaurant. The company started franchising in 2012 in Alabama and Georgia and moved its Support Center to Atlanta, Georgia, in 2021.
Growth milestones. According to the company, the 100th restaurant opened in 2018, the 200th in 2021 and the 300th in 2025. The company now reports more than 350 restaurants in 27 states, and it says it entered six new states in 2026.
The concept. Chicken Salad Chick is a fast-casual restaurant dedicated to fresh-made chicken salad, served in many flavors alongside sandwiches, sides, soups and desserts. Sales typically combine dine-in, carryout and catering, with lunch as a key daypart.
Why lenders view Chicken Salad Chick the way they do. Lenders see a brand with a long run of openings, a clear candidate screen, published fees and an SBA directory listing. They also see a focused menu that relies on fresh preparation and lunch traffic, so site quality, labor planning and daypart mix receive close attention in underwriting.
Chicken Salad Chick Franchise Costs
Initial franchise fee and grand opening fee. The franchisor lists a $50,000 initial franchise fee and a $10,000 grand opening fee. Item 5 of the FDD explains when each is paid, any refund conditions and whether multi-unit agreements change the fee structure.
Real estate and build-out for a Chicken Salad Chick franchise loan. The franchisor provides real estate and site selection support and guidance on restaurant design and construction. For a leased space, the largest variable is usually leasehold improvements: plumbing, electrical, HVAC, kitchen buildout and finishes. Landlord tenant improvement allowances can reduce what you finance.
Equipment, furniture and technology. A chicken salad kitchen relies heavily on refrigeration, prep equipment and cold holding, along with ovens for soups and baked items, dining room furniture, point-of-sale and online ordering technology, and signage.
Opening costs and working capital. Training, pre-opening payroll, opening inventory, deposits, insurance and the grand opening program come before steady sales, and Item 7 includes an additional funds line for the early operating period.
Total investment. The franchisor estimates a total investment of $777,000 to $1,033,500, including the $50,000 franchise fee and $10,000 grand opening fee, with the range driven by restaurant size and location. The current FDD’s Item 7 table breaks the estimate into categories such as:
- Initial franchise fee and grand opening fee
- Lease deposits and rent before opening
- Leasehold improvements and construction
- Architecture, design, engineering and permits
- Kitchen equipment, refrigeration and smallwares
- Furniture, fixtures and décor
- Signage
- Point-of-sale and technology systems
- Opening inventory and supplies
- Training expenses
- Insurance, licenses and deposits
- Additional funds for the initial operating period
Review the footnotes for each line, especially what the build-out estimate assumes about landlord contributions, because that single assumption can move your loan amount significantly.
Ongoing Fees and How They Affect Your Loan
Royalty. Restaurants pay a 5% royalty on gross sales, collected twice a month.
Marketing contributions. Each restaurant contributes 2% of gross sales to national advertising and 1% to local marketing.
Other fees. Technology, transfer, renewal and training fees, if any, appear in Item 6 of the FDD. Ask about remodel or refresh expectations over the 10-year term.
How lenders factor these costs in. Together, the royalty and marketing contributions take 8% of gross sales before food, labor, rent and loan payments. Lenders build those percentages into projected cash flow and test whether the restaurant can cover debt service with a cushion. The twice-monthly royalty schedule also matters for cash planning, so build it into your working capital model.
Franchisor Requirements for New Owners
The franchisor sets clear financial qualifications: a net worth of $750,000 and at least $250,000 in liquid assets. Restaurant experience is a plus but not required, and the company says it trains owners and looks for strong leadership, team management skills and community involvement.
The approval process. The franchisor describes a structured path: an initial inquiry and introductory call about market availability, an application submitted with a non-disclosure agreement, two discovery phases with delivery of the current FDD, a financial approval step in which candidates submit bank statements, validation calls with current franchise owners and a Hospitality Day visit to the Atlanta headquarters before official approval.
Why this matters for financing. The financial approval step happens before you sign, and the company says it then connects approved candidates with lenders familiar with its model. Start your own financing conversations during discovery so you can compare options rather than accept the first one offered.
Ways to Own a Chicken Salad Chick
A single new restaurant. The company says it welcomes single-unit owners. A first restaurant is typically financed with an SBA 7(a) loan or a conventional loan plus the owner’s cash contribution. Our page on franchise start-up financing explains how new-unit projects are structured.
Multi-unit and area development agreements. Qualified candidates can sign multi-unit agreements or area development agreements covering several restaurants in a designated territory. Financing is usually arranged restaurant by restaurant under an overall plan.
Buying an existing restaurant. With more than 350 restaurants open, resales occur. A resale gives a lender actual sales and expense history. The franchisor must approve the buyer and the transfer. Our article on buying a franchise resale covers the process.
Financing Options for a Chicken Salad Chick Franchise
SBA 7(a) loans. SBA 7(a) loans can fund leasehold improvements, equipment, franchise and grand opening fees, opening costs and working capital in one loan, subject to program rules and lender approval. For a single restaurant within the published investment range, a 7(a) loan is a frequent fit.
SBA 504 loans. If you buy a building or pad site for an owner-occupied restaurant, an SBA 504 loan can finance the real estate and long-lived equipment. It does not cover franchise fees or working capital, which can be funded separately.
Conventional term loans. Experienced multi-unit operators with strong balance sheets may prefer conventional business loans, especially for later restaurants in a development schedule.
Build-out financing. Because most of the investment goes into the space itself, our article on restaurant build-out financing explains how construction draws, landlord allowances and contingency budgets fit together.
Equipment financing. Refrigeration, prep tables, ovens, point-of-sale systems and furniture can be financed or leased separately. See our page on restaurant equipment financing and leasing. The primary lender will count any equipment payments in cash flow.
Working capital and lines of credit. A new restaurant needs cash for training, payroll and inventory before sales settle, and a line of credit can help an operator manage seasonal swings and catering orders. See our page on restaurant working capital.
Seller financing on resales. A selling franchisee may carry part of the price. A seller note is typically subordinate to the primary loan, and SBA program rules may limit how it is structured and repaid.
SBA Loans for Chicken Salad Chick Franchisees
SBA-backed loans are made by participating lenders, with the SBA backing part of each loan. For a franchise, the lender must confirm that the franchise relationship lets the borrower control its own business, and the SBA Franchise Directory streamlines that review. The SBA 7(a) program maximum is currently $5 million, and program rules can change. That cap applies to a borrower’s SBA loans in total, which matters if you plan several restaurants.
The directory listing. Chicken Salad Chick appears on the SBA Franchise Directory under code S0371, with no additional note. In plain English, the franchise agreement has been reviewed and the listing carries no special conditions for lenders. A listing supports eligibility, but it does not approve a borrower or a loan.
SBA application tips for a Chicken Salad Chick franchise loan. Bring the signed franchise agreement or development agreement, the franchisor’s site approval, the lease, a sources and uses statement, contractor bids and equipment quotes, and financial statements, tax returns and résumés for every owner. Our article on writing a franchise business plan for an SBA loan walks through the projections lenders want.
How Lenders Evaluate a Chicken Salad Chick Deal
Personal credit and financial history. Lenders review the credit, tax returns and debts of each significant owner, and owners above the program’s ownership threshold usually sign personally.
Net worth and liquidity. The franchisor’s $750,000 net worth and $250,000 liquidity screen is not a loan requirement, but lenders treat it as a floor. They will ask how much cash goes into the project and what remains after opening.
Leadership and management experience. Because restaurant experience is not required by the franchisor, lenders look closely at management background. Show who will run daily operations and how you will recruit and train a team.
Business plan and projections. Projections should reflect a lunch-heavy daypart, carryout and catering sales, labor for fresh daily preparation and the 8% combined royalty and marketing load. Our SBA loan calculator can estimate payments for planning only, not as an offer or approval.
The FDD and franchise agreement. Lenders read Item 17 for the 10-year term and renewal conditions, Item 19 to see whether the FDD includes financial performance representations and any development agreement schedule. They want the franchise term to run at least as long as the loan.
Site and lease. Lenders review the lease term, renewal options, assignment rights, landlord improvement allowance and any landlord waiver of equipment liens.
Historical financials on resales. For an existing restaurant, lenders study several years of profit and loss statements and tax returns and adjust for the buyer’s rent, fees and management costs.
Kitchen and Daily Preparation
Chicken Salad Chick’s menu is built on food made fresh each day, which shapes both equipment and labor. Refrigeration and cold holding are central, and prep space has to support daily batches of many recipes. Plan maintenance reserves for refrigeration and a backup plan for a cooler failure, which can mean lost product as well as lost sales.
Labor deserves the same attention. Fresh preparation, a busy lunch rush and catering orders call for a well-trained team, so lenders appreciate projections that show realistic staffing and a manager plan. Equipment financing matched to useful life can keep opening cash available for hiring and training.
Multi-Unit Growth and Development Agreements
The franchisor offers multi-unit agreements and area development agreements for qualified candidates, along with exclusive territories. A development agreement sets the number of restaurants and the opening schedule, which becomes the backbone of your financing plan.
Most lenders will not fund a whole development schedule upfront. They finance the first restaurant, watch it open and stabilize, then review combined cash flow and remaining liquidity before funding the next. Our article on financing an area development agreement covers how operators plan capital across a schedule. Because the SBA program maximum applies across all of a borrower’s SBA loans, later restaurants may move to conventional financing.
Real-World Scenarios
A first-time owner with management experience. A corporate manager with no restaurant background meets the net worth and liquidity screen and signs for one restaurant. An SBA 7(a) loan funds the build-out, equipment and opening costs, and the lender focuses on the borrower’s management plan and the general manager hire.
An operator building a territory. An experienced restaurant franchisee signs an area development agreement. The first restaurant uses an SBA 7(a) loan, and later restaurants move to conventional financing backed by the group’s combined cash flow.
A buyer acquiring an open restaurant. A buyer purchases an operating Chicken Salad Chick from a franchisee who is relocating. The lender underwrites the restaurant’s history, the franchisor approves the transfer and the seller carries a small subordinate note.
An owner who buys a pad site. A multi-unit owner buys land for a freestanding restaurant and uses an SBA 504 loan for the building and long-lived equipment, with separate financing for fees and working capital.
Common Mistakes to Avoid
- Treating the $250,000 liquidity screen as the full cash needed for a project
- Leaving the 8% combined royalty and marketing load out of projections
- Assuming a landlord allowance before the lease is signed
- Accepting the first financing introduction without comparing options
- Underestimating labor for daily fresh preparation and catering
- Committing to a development schedule without a capital plan for each restaurant
- Relying on website figures without checking the current FDD
For more pitfalls that apply across the industry, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Chicken Salad Chick Franchise
Step 1: Confirm you meet the screen. Document your net worth and liquid assets against the franchisor’s requirements.
Step 2: Complete discovery and review the FDD. Work with a franchise attorney on Items 5, 6, 7, 10, 17 and 19 and any development agreement.
Step 3: Talk with a financing specialist early. Compare SBA and conventional options during discovery, before the financial approval step.
Step 4: Select and approve a site. Coordinate franchisor site approval with lease negotiations and landlord allowances.
Step 5: Assemble your documents. Gather financial statements, tax returns, résumés, the franchise agreement, the lease, bids, quotes and projections.
Step 6: Close and build. Align loan closing, construction draws and training so the restaurant opens on schedule.
Step 7: Plan the next restaurant. Track results and keep your financing partner updated if you hold development rights.
Chicken Salad Chick Franchise Loan FAQs
How much does it cost to open a Chicken Salad Chick?
The franchisor estimates a total initial investment of $777,000 to $1,033,500, including the franchise fee and grand opening fee. Costs vary with restaurant size and location.
What is the Chicken Salad Chick franchise fee?
The initial franchise fee is $50,000, and the franchisor also lists a $10,000 grand opening fee.
What royalty does Chicken Salad Chick charge?
Restaurants pay a 5% royalty on gross sales twice a month, plus 2% of gross sales for national advertising and 1% for local marketing.
How much net worth and liquid capital do I need?
The franchisor requires a net worth of $750,000 and at least $250,000 in liquid assets.
Is Chicken Salad Chick eligible for SBA loans?
Yes, the brand is listed on the SBA Franchise Directory under code S0371, with no additional note. Approval still depends on the borrower, the project, program rules and the lender.
Does Chicken Salad Chick offer financing?
The company says it does not offer in-house financing but works with outside lenders on some startup costs. Check Item 10 of the current FDD for details.
Do I need restaurant experience?
The franchisor says restaurant experience is a plus but not required, and it provides training. Lenders will still want a strong management plan.
Can I own more than one restaurant?
Yes. Multi-unit and area development agreements are available to qualified candidates, and single-unit owners are also welcome.
Can I buy an existing Chicken Salad Chick?
Yes, with franchisor approval of the transfer. Lenders can then underwrite the restaurant’s actual results.
How long is the franchise agreement?
The term is 10 years, with up to two additional 10-year terms for owners who meet renewal requirements.
Can I finance equipment separately?
Yes, refrigeration, prep equipment, ovens and technology can often be financed or leased on their own, and the payments count in your cash flow.
Final Thoughts
A Chicken Salad Chick franchise loan starts with clear numbers: a published investment range, a defined net worth and liquidity screen, set royalty and marketing percentages and an SBA directory listing. Confirm each figure in the current FDD, budget the build-out carefully, plan labor for fresh daily preparation and compare financing options early, and you will be ready for both the franchisor’s approval and the lender’s.
US Professional Funding helps restaurant franchisees finance new units, acquisitions, equipment, real estate and working capital. Learn more about our franchise business financing and restaurant financing programs.
