Laynes Chicken Fingers Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$451,500 - $1,050,000
Franchise Fee
$45,000
Total US Locations
19
Business Summary
Layne's Chicken Fingers operates dine-in and/or take-out restaurants that specialize in serving chicken fingers, wraps, sandwiches, crinkle-cut fries, and their signature secret sauce. The restaurants also offer specialty non-alcoholic beverages, soft drinks, and related items.
Corporate History
The Layne's Chicken Fingers concept was originally founded in 1994 by M.A.G. Systems, Inc. Layne's Chicken Franchising, LLC was formed as a Texas limited liability company on February 16, 2017, and acquired the majority of assets from M.A.G. Systems, Inc. on January 28, 2017. Layne's Chicken Franchising, LLC began offering franchises in December 2018.
Financial Overview
Investment Range
$451,500 - $1,050,000
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$45,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$178,500
Equipment Costs (High)
$372,500
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Item 4 of Layne's Chicken Franchising, LLC's Franchise Disclosure Document explicitly states that the franchisor's financial condition, as reflected in its financial statements (Item 21), calls into question its financial ability to provide services and support to franchisees. The company reported a net loss of $117,137 in 2024 and a member's deficit of $(450,736) in 2024, continuing from a deficit of $(333,599) in 2023. This indicates that Layne's Chicken Franchising, LLC's liabilities exceed its assets, resulting in negative equity. Despite an unqualified audit opinion, this specific risk disclosure highlights potential financial challenges for the franchisor.
Financing Details
Layne's Chicken Franchising, LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
19
Franchised Units
15
Corporate Units
4
Avg Square Footage
3,200
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Layne's Chicken Franchising, LLC has no litigation to disclose, as stated in Item 3 of its Franchise Disclosure Document. This means Layne's Chicken Franchising, LLC and its management have no material litigation or bankruptcy proceedings required to be reported.
Bankruptcy History
Layne's Chicken Franchising, LLC has no bankruptcy proceedings to report, as stated in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Layne's Chicken Fingers franchisees must give notice of their intent to renew between 6 and 9 months before the current agreement expires. They must be in good standing, having complied with all material terms and satisfied all monetary obligations to Layne's Chicken Franchising, LLC, its affiliates, and third-party suppliers. Franchisees are required to renovate and refurbish their restaurant premises to meet the then-current image, trade dress, equipment, and furnishing requirements. They must also have the right to remain in possession of the restaurant premises or secure an approved alternate site, comply with current qualification and training requirements, pay a renewal fee of $10,000, and sign Layne's Chicken Franchising, LLC's then-current franchise agreement, which may have materially different terms. Finally, franchisees and their owners must sign a general release.
Training & Support Program
Franchisor Assistance
Before opening their restaurant, Layne's Chicken Franchising, LLC permits or refuses site development within 30 days of receiving information and approves lease terms. They provide an initial training program for up to three individuals (including the Operations Manager) at no cost for instruction and materials, though franchisees cover their own expenses. For the first restaurant, 2-3 certified representatives may provide on-site opening assistance for a minimum of seven days, with franchisees reimbursing travel, lodging, and meal expenses. Pre-opening consultation and advice are also provided on development, building layout, equipment, plans, purchasing, and inventory. Layne's Chicken Franchising, LLC also provides a list of approved suppliers and access to their Manuals. During operation, Layne's Chicken Franchising, LLC offers ongoing consultation and advice, additional training programs (for a fee), and may make merchandise available for resale. They provide updated lists of approved suppliers, approve or disapprove franchisee promotional materials within 10 days, administer the Brand Development Fee, maintain a central website for the system, and provide access to proprietary software programs. They may also assist or require franchisees to establish maximum and minimum prices.
Initial Training Hours
111
Training Location
Dallas-Fort Worth, Texas
Ongoing Support
After opening, Layne's Chicken Franchising, LLC provides ongoing consultation and advice, along with additional training programs and seminars as deemed appropriate. They make merchandise available for resale and provide updated lists of approved suppliers. The franchisor approves or disapproves proposed promotional and marketing materials within 10 days and administers the Brand Development Fee. Layne's Chicken Franchising, LLC maintains a central website that identifies each restaurant's location and promotes the system, and provides access to any proprietary software programs developed for the system. They may also assist or require franchisees to establish maximum and minimum prices. Franchisees are required to attend an annual convention, and quality assurance inspections and mystery shopper evaluations may be conducted at the franchisee's expense.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Staff Count
4
Territory Size Requirements
Layne's Chicken Franchising, LLC grants a 'Protected Area' around each restaurant, which may be defined by a specific radius from the main entrance, a map, or a geographic description. The minimum Protected Area can be as small as an office or retail building in densely populated urban areas, and larger in suburban, less populated areas. If not explicitly identified in the franchise agreement, the Protected Area defaults to a one-mile radius from the restaurant's main entrance. However, this protection excludes 'Captive Markets' (such as department stores, shopping malls, airports, or college campuses) where Layne's Chicken Franchising, LLC reserves the right to operate or license other restaurants.
Staffing Notes
Layne's Chicken Fingers requires a minimum of 4 individuals to staff each restaurant at all times, with restaurants operating at least 9 hours per day. The franchised business must be supervised on-premises by a designated Operations Manager, who must devote their full time and best efforts to the restaurant's operations and cannot engage in any other business. Franchisees are responsible for hiring, determining job vacancies, setting wages and benefits, and disciplining employees. All staff must maintain a neat and clean appearance and wear designated uniforms.