Slim Chickens Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,228,900 - $4,466,000
Franchise Fee
$15,000
Min Cash Required
$40,000
Total US Locations
203
Business Summary
Slim Chickens operates fast-casual restaurants specializing in fresh chicken tenders, chicken wings, salads, sandwiches, wraps, sides, and dipping sauces, along with related merchandise and beverages. These restaurants offer quality food, moderate prices, and quick, efficient service, typically including indoor dining and drive-through options.
Corporate History
Slim Chicken's Holdings, LLC, an affiliate that owns the intellectual property rights related to the Slim Chickens name and system, was formed in August 2006. A predecessor entity, Slim Chicken's, Inc., briefly offered Slim Chickens franchises in 2007 but did not sell any. The current franchisor entity, Slim Chicken's Development Company, LLC, was organized in Delaware in June 2011 and began offering franchises for Slim Chickens restaurants in August 2011. Its parent company, Slim Chickens Global, LLC, was formed in June 2019 as a holding company.
Financial Overview
Investment Range
$1,228,900 - $4,466,000
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$40,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$886,000
Equipment Costs (High)
$2,322,000
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The independent auditor has issued an unqualified opinion, meaning the financial statements fairly represent Slim Chickens' financial position. The auditors did not identify any conditions that raise substantial doubt about Slim Chickens' ability to continue as a going concern for a reasonable period of time. The company also shows healthy financial standing with current assets significantly exceeding current liabilities, indicating strong working capital, and reported a net income of $10,499,340 for fiscal year 2024.
Financing Details
Slim Chickens does not offer any direct or indirect financing options to its franchisees. It also does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
203
Franchised Units
192
Corporate Units
11
Avg Square Footage
2,950
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Slim Chickens has disclosed one past legal action. On September 29, 2020, Slim Chickens entered into a Consent Order with the Securities Division of the Department of Financial Institutions of the State of Washington. This agreement resolved allegations that Slim Chickens sold two franchises in Washington without being registered to do so and failed to disclose this fact to prospective franchisees. Slim Chickens cooperated with the state's investigation, agreed to cease these practices, and paid $1,000 in investigative costs. No other litigation is required to be disclosed.
Bankruptcy History
Slim Chickens has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Slim Chickens franchisees must provide written notice between 6 and 12 months before the current term expires. They must be in good standing, not be in default of any agreements, and have paid all financial obligations. Franchisees are required to sign a general release of claims against Slim Chickens and its affiliates. Additionally, they must agree to reimage, renovate, refurbish, and modernize their restaurant to meet Slim Chickens' then-current brand standards, and pay a renewal fee equal to 50% of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Before a Slim Chickens restaurant opens, the franchisor assists with site evaluation, provides standards for construction and decoration, approves final plans, and offers specifications for equipment and ingredients. They also lend the Brand Standards Manual and provide a multi-part training program covering franchisee ownership and unit operations, along with recommended accounting procedures and advertising review. After opening, Slim Chickens provides an on-site training team for 12 to 14 days (depending on whether it's the first or subsequent restaurant). Ongoing support includes permitting the continued use of the updated Brand Standards Manual, making additional management training and testing available, providing non-management employee training programs, advising on various operational and marketing techniques, conducting quality inspections, offering specifications for repairs and remodels, providing lists of approved suppliers, offering pricing guidance, managing the Advertising Fund, and utilizing a Technology Fee to develop and maintain technological advancements for the system, including an app.
Initial Training Hours
333
Training Location
Corporate headquarters in Fayetteville, Arkansas, company-affiliated restaurants in Arkansas, and select franchisee markets including Denver, Nashville, San Antonio, and South Dakota.
Ongoing Support
After opening, Slim Chickens franchisees receive continued access to the Brand Standards Manual, which is regularly updated. They can also access additional management training programs and other testing for their managers and employees. The franchisor provides a non-management employee training program for franchisees to use. Slim Chickens advises on merchandising, marketing, operational, and management techniques, and conducts quality, service, and cleanliness inspections of restaurants. They also provide specifications for repairs and remodeling, lists of approved distributors and products, and pricing guidance. The franchisor administers the Advertising Fund and uses the Technology Fee to develop and maintain technological advances for the Slim Chickens System, including a customer ordering and loyalty app.
Franchise Requirements
Ideal Candidate Profile
Slim Chickens seeks franchisees with strong business skills, financial capacity, and good character. If the franchisee is an individual, they are expected to be actively and personally involved in the operation of their restaurant. If the franchisee is a business entity, a designated 'Controlling Owner' must have full authority to make binding business decisions and participate personally and directly in the operation and management of the restaurant. For multi-unit owners, a Supervisor is required to oversee multiple locations, with an additional Supervisor needed upon opening the 6th and every subsequent 5th restaurant.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Slim Chickens defines its franchise territory as a designated area around the approved location. This area typically covers a radius of approximately two and a half miles, or a population of around 45,000 people, measured by metes and bounds. These designated areas may exclude any locations where Slim Chickens already has existing contractual commitments.
Staffing Notes
For a single Slim Chickens restaurant, the Controlling Owner, the first supervisor, the general manager, an assistant manager, and three shift managers (a total of 7 individuals) must complete the Slim Chickens Training Program before opening. Any person responsible for the day-to-day management of a restaurant must be a Certified Manager who has successfully completed this training. If a franchisee operates multiple restaurants, they must employ a Supervisor for coordination, and an additional Supervisor is required upon the opening of their sixth restaurant and every subsequent fifth restaurant. All Supervisors must complete the training program. Additionally, all non-management employees must complete a training program outlined in the Brand Standards Manual.