Chicken In A Barrel Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$136,300 - $730,500
Franchise Fee
$15,000
Total US Locations
7
Business Summary
Chicken in a Barrel BBQ Franchising, LLC offers franchises for fast-casual restaurants that serve barrel-smoked barbecue chicken, ribs, beef, pork, and various barbecue-style side dishes. These restaurants can be set up as either a limited-menu, limited-seating Roadside Express or a larger, full-service restaurant with a more complete menu and greater seating capacity. Chicken in a Barrel BBQ restaurants offer on-premises dining, carryout, catering, and delivery.
Corporate History
Chicken in a Barrel BBQ Franchising, LLC was established as a Hawaii limited liability company on January 14, 2016. The company operates under its corporate name and the Chicken in a Barrel BBQ trade name. It began offering franchises on February 29, 2016. Chicken in a Barrel BBQ Franchising, LLC is wholly-owned by its parent company, Chicken In A Barrel BBQ, Inc., which was established on May 8, 2013, also in Hawaii.
Financial Overview
Investment Range
$136,300 - $730,500
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
0.5%
Equipment Costs (Low)
$41,500
Equipment Costs (High)
$394,500
Working Capital
$63,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Chicken in a Barrel BBQ Franchising, LLC, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The auditors were required to evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern.
Financing Details
Chicken in a Barrel BBQ Franchising, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
7
Franchised Units
6
Corporate Units
1
Avg Square Footage
1,700
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Chicken in a Barrel BBQ Franchising, LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Chicken in a Barrel BBQ Franchising, LLC has not been involved in any material litigation in the past three years.
Bankruptcy History
Chicken in a Barrel BBQ Franchising, LLC has no bankruptcy information that is required to be disclosed in Item 4 of its Franchise Disclosure Document. This indicates that neither the franchisor nor its key personnel have a history of bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Chicken in a Barrel BBQ Franchising, LLC franchisees must meet several conditions. They must not be in default of the Franchise Agreement, have complied with all its material terms, and ensure their owners and their spouses have also complied with their agreements. Franchisees must provide 180 days' prior written notice of their intent to renew, sign the franchisor's then-current Franchise Agreement and related agreements, sign a general release, pay all monetary obligations owed, and remodel and upgrade their restaurant facility. Additionally, they must have the right to continue occupying their business premises.
Training & Support Program
Franchisor Assistance
Chicken in a Barrel BBQ Franchising, LLC provides pre-opening assistance by granting the right to operate a Chicken in a Barrel BBQ restaurant at an approved location within a designated territory. They loan franchisees a copy of their confidential Operations Manual, which contains mandatory operating procedures. The franchisor reviews and approves proposed restaurant sites, and provides a list of approved suppliers and distributors, as well as approved signage, equipment, furniture, and fixtures. They also identify and locate the franchisee's restaurant on their website and provide an initial training program that covers establishment, development, marketing, and operation of the business. Ongoing support includes offering supplemental on-site training if requested (for a fee), initial training for replacement operating managers (for a fee), and communicating updated operating standards, marketing standards, and approved vendors. Chicken in a Barrel BBQ Franchising, LLC may also coordinate an annual system conference for franchisees, administer a brand development fund for system-wide marketing, and provide guidance on pricing, although franchisees ultimately set their own prices. They do not assist with hiring or training general employees but expect franchisees to ensure employees wear proper uniforms and adhere to system standards.
Initial Training Hours
130
Training Location
Hanalei, Hawaii
Ongoing Support
After opening, Chicken in a Barrel BBQ Franchising, LLC may require franchisees and their operating managers to participate in supplemental on-site training for a daily fee per trainer, plus expenses. They also offer initial training for replacement operating managers, which typically costs $300 per manager per day, plus expenses. The franchisor establishes, updates, and communicates operating standards, procedures, and system requirements, including information on products, equipment, supplies, marketing, and promotion. They provide lists of approved vendors and suppliers. Chicken in a Barrel BBQ Franchising, LLC may coordinate an annual conference for franchisees, for which a fee not exceeding $750 may be charged, and administer a brand development fund. The franchisor does not assist with employee hiring or general training, but requires franchisees to ensure employees wear proper uniforms and follow system standards. Franchisees exclusively determine their product pricing, though the franchisor may suggest pricing levels.
Franchise Requirements
Ideal Candidate Profile
Chicken in a Barrel BBQ seeks franchisees (or their designated Managing Owner if the franchisee is a corporate entity) who are personally responsible for the management and overall supervision of their restaurant. The ideal candidate must be actively and substantially involved in the day-to-day on-site operations of the restaurant. They should be individuals of good moral character, possess sufficient business experience and aptitude, and have adequate financial resources to successfully own and operate a Chicken in a Barrel BBQ Restaurant. All such candidates must be approved by the franchisor and must successfully complete the initial training program. Additionally, all owners of the franchisee entity and their respective spouses are required to personally guarantee all financial obligations and adhere to the confidentiality and non-competition covenants outlined in the franchise agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
Protected
Territory Size Requirements
Chicken in a Barrel BBQ Franchising, LLC designates a territory around the approved restaurant location. The size and scope of this designated territory vary based on population density, demographics, and geographical boundaries. Generally, the territory will extend approximately two miles in all directions travelable by road from the restaurant location, though it may be smaller based on local conditions. The franchisor may define territories using zip codes, boundary streets, highways, county lines, or designated market areas.
Staffing Notes
Chicken in a Barrel BBQ Franchising, LLC does not provide assistance with hiring or general training of employees; franchisees are directly responsible for managing and supervising their own staff. The franchise requires that all employees wear and maintain proper uniforms with approved Chicken in a Barrel BBQ branded apparel. Franchisees must ensure that all products and services are prepared, maintained, and served according to system standards and the Operations Manual. Each restaurant must always be managed and supervised on-site by either a Managing Owner or an Operating Manager. If a franchisee owns multiple restaurants, each must have an on-site Operating Manager. These managers must complete the initial training program and meet the franchisor's criteria, and are required to sign confidentiality agreements.