In this FDD Talk post, you’ll learn the following:

• Section I – Estimated initial investment (franchise costs) for a Slim Chickens franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Slim Chickens franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Slim Chickens outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the Slim Chickens franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of Slim Chickens’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 fiscal year average, median, highest, and lowest gross sales for the 66 franchised Slim Chickens Restaurants that were open and operating for the full 2021 fiscal year and are representative of the current prototype Restaurant under development

• average, median, highest, and lowest gross sales for the last six-month period of the 2021 fiscal year for the 8 Slim Chickens Restaurants that opened in 2021, were open for the entire second half of the fiscal year, and represent one of the four standard prototype Restaurants

• Section VI – Key ratios, comparables, computations, and analyses for the Slim Chickens franchise opportunity (exclusive content for Platinum subscribers)

Section I – Slim Chickens Franchise Costs

• Slim Chickens franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $15,000 to $30,000
• Real Property/Site Lease/Site Review Fees:  $0 to $15,000
• Construction/Site Work/Building Conversion:  $600,000 to $1,800,000
• Furniture, Fixtures, and Equipment:  $275,000 to $325,000
• Smallwares:  $13,000 to $16,000
• Building Signage and Interior Graphics:  $45,000 to $75,000
• Soft Costs:  $137,000 to $278,000
• Insurance:  $9,000 to $15,000
• Opening Inventory:  $6,000 to $10,000
• Training Costs/Opening Assistance Reimbursement:  $23,000 to $39,000
• POS System/Drive-Thru Components/Menu Boards:  $80,000 to $130,000
• Low Voltage/Security/Network Installation:  $35,000 to $45,000
• Security and Utility Deposits:  $2,500 to $12,000
• Business Licenses (excluding beer and wine license):  $400 to $2,000
• Grand Opening Ad Expenditure:  $10,000
• Additional Funds for 3 Months:  $40,000 to $65,000
• Total Estimated Slim Chickens Franchise Costs:  $1,307,000 to $4,052,000

Section II – Slim Chickens’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Slim Chickens’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $15,000 to $30,000
• Royalty Fee:  5% of Gross Sales
• Advertising Fund Contribution:  2% of Gross Sales
• Local Ad Expenditure/Local Advertising Cooperative Contribution:  1% of Gross Sales

Section III – Number of Franchised and Company-Owned Slim Chickens Outlets

Franchised

2019

• Outlets at the Start of the Year:  56
• Outlets at the End of the Year:  59
• Net Change:  +3

2020

• Outlets at the Start of the Year:  59
• Outlets at the End of the Year:  77
• Net Change:  +18

2021

• Outlets at the Start of the Year:  77
• Outlets at the End of the Year:  107
• Net Change:  +30

Company-Owned

2019

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  23
• Net Change:  +3

2020

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  11
• Net Change:  -12

2021

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  9
• Net Change:  -2

Section IV – Background Information on the Slim Chickens Franchise

14 Things You Need to Know About the Slim Chickens Franchise

Grows Leadership Team with New Senior Vice President of Operations

1.  In late November 2021, Slim Chickens announced that it has strengthened its executive team with the appointment of restaurant industry leader Christina Vaughan to senior vice president of operations. Vaughan will work closely with the COO of Slim Chickens, Sam Rothschild, handling various aspects of the brand including franchise, corporate, and training operations. Additionally, in this role, she will be overseeing the cross functional leadership team and working directly with the partnership group.

2.  Vaughan said, “Joining a growing brand is a very exciting step for me, and I could not think of a better concept that I could get in on the ground floor with. Slim Chickens’ culture of putting people first, whether it be their customers, franchisees or team members is refreshing. I highly value authenticity and transparency in my partnerships, and Slims certainly shares that same passion.”

3.  With more than two decades of experience in the restaurant industry, Vaughan is well suited to join the Slim Chickens executive team. She previously served in various roles at Sonic Restaurant, Inc. for over 20 years. Vaughan most recently operated as the company’s senior vice president of operations and training with Inspire Brands where she developed and managed daily operations. This position was served after her three-year reign as Sonic Restaurant’s president.

4.  Rothschild said, “Christina has had an incredibly impressive professional career so far. Her depth of knowledge on the food service industry, strategic and tactical thinking along with the service mentality for franchise and company operations support blew us away. Christina had already worked with some of our current Sonic franchises – when checking references, they could have not been more complimentary. The addition of Christina as the Senior VPO comes at a time of expansion, and we are ecstatic for her vision and leadership to guide us through this period.”

Inks Largest Franchise Deal in Brand History

5.  In early December 2021, Slim Chickens announced that it has inked a deal for the entire state of Indiana and the Southeast region of Florida for a total of 60 locations. “Slim Chickens’ leadership team is top-notch,” said Al Cabrera, the franchise partner spearheading the 60-unit deal. “After three decades in the restaurant industry, it is easy to spot an amazing opportunity, and Slim Chickens was a clear choice for the next addition to my portfolio.”

6.  Cuban refugee Cabrera is a talented multi-concept franchisee with over 35 years of experience. He has the tools, knowledge, and team to lead the brand’s development into Indiana and further grow the brand presence in Florida.

7.  Jackie Lobdell, vice president of franchise development for Slim Chickens, said, “This is a huge moment for Slim Chickens. We are entering a new state and doing it all with a strong operator who believes in our leadership team, has passion for the brand and has the skillset to run successful restaurants. We’re beyond excited to welcome Al to Slim Chickens, and look forward to watching him grow.”

Ends 2021 with 350 New Signed Agreements

8.  In mid-January 2022, Slim Chickens reported that it had made brand history in 2021 by closing out the year with more signed development deals and openings than ever before. The brand celebrated a number of milestones including its 150th store opening, entered 65 new markets with their development deals, and had close to 40 openings. It also inked 350 signed agreements, bringing the total units in development to 750.

9.  On top of the rapid franchise growth, Slim Chickens also had a 25% positive comp store sales growth – in fact, the brand has had a 43.9% increase in comp store sales growth over the last four years.

10.  According to Jackie Lobdell, vice president of franchise development for Slim Chickens, “This has been Slim Chickens’ best year yet and we could not be prouder of the immense growth that we have experienced. It has truly been a team effort – from the dedication of our franchisees to providing a great customer experience to the corporate team continuing to find new ways to elevate the brand. We are already slated to open over 60 locations in 2022, and can’t wait to see what else the new year holds for Slims.”

11.  Slim Chickens received several awards throughout 2021 including being named the Breakout Brand of the Year by QSR Magazine, the Top 100 Movers and Shakers by Fast Casual, Best Chicken Franchise to Buy and 40 Smartest Growing Brands by Franchise Times, to name a few.

Company History

12.  Slim Chickens was founded in 2003 by Greg Smart and Tom Gordon in Fayetteville, Arkansas. Smart, who has always been an entrepreneur, felt that there was an untapped market for fresh chicken tenders in the fried chicken sector. After coming up with his idea, Smart brought in Gordon, one of his best friends as well as someone who has extensive experience in the restaurant industry. Smart and Gordon further developed the idea for Slim Chickens and spent months developing the recipe for the brand’s menu, which includes chicken tenders, wings, sandwiches, salads, wraps, chicken & waffles, and more.

13.  The first Slim Chickens opened in nearby Rogers, Arkansas. Building on the success of the first Slim Chickens, Smart and Gordon opened five more company-owned locations around Arkansas and Oklahoma. In 2013, Slim Chickens began franchising and grew fairly quickly. By 2020, Slim Chickens had more than 100 locations in operation. Today, there are Slim Chickens restaurants in more than 19 states, the UK, and Kuwait.

Entrepreneur’s Franchise 500

14.  Slim Chickens ranked No. 175 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Slim Chickens Franchise (Item 19, 2022 FDD)

Part 1 – Analysis of Historical Gross Sales for All Franchised Slim Chickens Restaurants That Were Open and Operating During the Entire Fiscal Year 2021

• This Part 1 analysis contains historical average and median Gross Sales incurred in operating existing Slim Chickens franchised Restaurants that were open and operating during the entire 2021 fiscal year.

• As of the last fiscal year ended January 2, 2022, there were 107 franchised Restaurants open and operating in the United States, specifically in Alabama (2), Arkansas (15), Colorado (3), Florida (5), Georgia (1), Illinois (2), Kansas (4), Kentucky (4), Louisiana (1), Maryland (2), Michigan (2), Missouri (9), Mississippi (3), Montana (1), Nebraska (2), North Dakota (1), Ohio (4), Oklahoma (8), Pennsylvania (1), South Dakota (2), Tennessee (6), Texas (25), Utah (2), Virginia (1), and Washington (1).

• Of these 107 Restaurants, 87 of these Restaurants represent the four standard prototypes currently under development and 77 were open and operating for the entire 2021 fiscal year.

• 20 Restaurants are excluded as they do not represent the standard prototype Restaurant currently under development: (a) 6 of the Restaurants are non-prototype or non-freestanding facilities without a drive-thru that are located on college campuses and do not operate year round, (b) 3 of the Restaurants are food trucks, (c) 10 of the Restaurants are non-traditional locations attached to other businesses, and (d) 1 of the Restaurants is a free-standing building without a drive-thru.

• Part 1 also excludes 30 franchised Restaurants in the United States that were opened in 2021, and 16 additional franchised Restaurants located in the United Kingdom.

• Part 1 presents average and median Gross Sales information for the 2021 fiscal year for the 66 franchised Restaurants that were open and operating for the full 2021 fiscal year which are representative of the current prototype Restaurant under development.

• These Restaurants have been sorted into four groups based on full fiscal year Gross Sales. Group 1 represents locations with at least $3,000,000 in Gross Sales. Group 2 represents locations with less than $3,000,000 and greater than $2,000,000 in Gross Sales. Group 3 represents restaurants with less than $2,000,000 and greater than $1,500,000 in Gross Sales. Group 4 represents restaurants with less than $1,500,000 in Gross Sales.

• The information in the table is derived from Slim Chickens franchisees’ sales reports and is unaudited and unverified. You should conduct an independent investigation of the costs and expenses you will incur in operating your Restaurant.

Group 1 – Gross Sales > $3,000,000

• Average Gross Sales Per Restaurant:  $3,864,513
• Median Gross Sales Per Restaurant:  $3,472,026
• Total Number of Restaurants in Analysis:  14
• Number of Restaurants in Category Meeting or Exceeding the Average Amount:  5
• Number of Restaurants in Category Meeting or Exceeding the Median Amount:  7

Group 2 – Gross Sales $2,000,000 to $3,000,000

• Average Gross Sales Per Restaurant:  $2,361,422
• Median Gross Sales Per Restaurant:  $2,411,445
• Total Number of Restaurants in Analysis:  25
• Number of Restaurants in Category Meeting or Exceeding the Average Amount:  13
• Number of Restaurants in Category Meeting or Exceeding the Median Amount:  12

Group 3 – Gross Sales $1,500,000 to $2,000,000

• Average Gross Sales Per Restaurant:  $1,707,735
• Median Gross Sales Per Restaurant:  $1,730,338
• Total Number of Restaurants in Analysis:  19
• Number of Restaurants in Category Meeting or Exceeding the Average Amount:  11
• Number of Restaurants in Category Meeting or Exceeding the Median Amount:  11

Group 4 – Gross Sales < $1,500,000

• Average Gross Sales Per Restaurant:  $1,325,342
• Median Gross Sales Per Restaurant:  $1,357,394
• Total Number of Restaurants in Analysis:  8
• Number of Restaurants in Category Meeting or Exceeding the Average Amount:  6
• Number of Restaurants in Category Meeting or Exceeding the Median Amount:  4

• The highest Gross Sales amount for the Restaurants in the above table was $5,764,715 and the lowest Gross Sales amount for the Restaurants in the above table was $1,145,623. Average Gross Sales for all 66 Restaurants was $2,366,491. Median Gross Sales for all 66 Restaurants was $1,787,386.

• Gross Sales consists of the total sales price of all food products (including take-out, drive-thru, or catering) and all other products and services sold by the Slim Chickens Restaurants, including discounts and excluding taxes collected directly from customers and paid to taxing authorities.

Part 2 – Analysis of Historical Gross Sales for All Franchised Slim Chickens Restaurants That Were Newly Opened During Fiscal Year 2021

• As noted above, 30 new franchised Restaurants opened in 2021. While Slim Chickens excluded these 30 Restaurants from the above Part 1 analysis since none of the 30 Restaurants were open and operating the entire 2021 fiscal year, 8 of these restaurants were open for the entire second half of the fiscal year and represent one of the four standard prototype Restaurants.

• These Restaurants were opened between January 14, 2021 and June 28, 2021 and therefore all 8 of these Restaurants operated for at least six months in fiscal year 2021.

• During the last six-month period of the 2021 fiscal year from July 5, 2021 to January 2, 2022, these 8 Restaurants averaged $65,007 per week in Gross Sales per Restaurant with a median of $67,593 per week in Gross Sales. The highest weekly Gross Sales for the 8 Restaurants was $97,970, and the lowest weekly Gross Sales for the 8 Restaurants was $38,211.

• Some Slim Chickens Restaurants have achieved the sales results in this analysis. Your individual results may differ. There is no assurance that you will achieve sales or cost results at the levels reflected in this analysis.

Section VI – Slim Chickens Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️