Founded in 1994 by Mike Layne in College Station, Texas, Layne’s Chicken Fingers has grown from a small-town eatery into a beloved fast-casual restaurant brand known for its iconic chicken fingers and secret sauce. The brand emphasizes quality, simplicity, and friendly service, maintaining its original charm while expanding across the United States. The company’s mascot, Astro Chicken, symbolizes the brand’s fun and approachable culture, and in 2021, Astro Chicken was humorously promoted to Chief Finger Officer (CFO). Layne’s focuses on hand-breaded chicken tenders, sandwiches, and sides, all made with fresh, locally sourced ingredients, which has helped build a loyal customer base.
Layne’s Chicken Fingers Franchise Cost
Starting a Layne’s Chicken Fingers franchise requires a total investment ranging from approximately $446,500 to $1,015,000. This investment covers a variety of startup expenses, including:
- Initial franchise fee: $40,000 to $45,000
- Lease deposits and rent: $7,500 to $50,000
- Utility deposits: $5,000
- Government licenses and permits: $1,500 to $10,000
- Leasehold improvements: $150,000 to $400,000
- Kitchen equipment and smallwares: $150,000 to $250,000
- Signage, furniture, POS systems, and other operational costs
These figures vary based on location, restaurant format, and lease or purchase decisions. Franchisees also pay ongoing fees: a 5% royalty on gross revenues and a 2% marketing fee, which support brand development and national advertising.
Layne’s Chicken Fingers Franchise Conditions
To qualify as a franchisee, candidates should have at least $300,000 in liquid capital to ensure they can support the initial setup and ongoing operations. The franchisor requires franchisees to be multi-unit developers, with 100% of current franchisees operating multiple locations, reflecting a focus on experienced operators. The franchise agreement term is typically 10 years, with options for renewal. Layne’s supports franchisees with comprehensive training, including 27 hours of classroom instruction and 84 hours of on-the-job training, ensuring operators are well-prepared to manage their restaurants.
Layne’s Chicken Fingers Franchise Process
The process to become a Layne’s Chicken Fingers franchisee involves several key steps:
Initial Inquiry and Pre-Qualification: Prospective franchisees express interest and provide financial and background information to determine eligibility.
Discovery Process: Candidates learn about the brand, business model, and expectations through meetings and discussions with the Layne’s team.
Franchise Application and Approval: After due diligence, qualified candidates submit formal applications for approval.
Signing the Franchise Agreement: Approved candidates sign agreements outlining rights and obligations.
Training and Site Selection: Franchisees undergo training and work with Layne’s to select and prepare a location.
Grand Opening and Ongoing Support: The franchisor assists with the launch and provides continuous operational support.
Throughout this process, Layne’s emphasizes collaboration and support, ensuring franchisees are never alone and have access to leadership and peer networks.
Layne’s Chicken Fingers Franchise Profit
Layne’s Chicken Fingers franchises have demonstrated strong revenue potential. The average unit volume (AUV) for a Layne’s location is approximately $1.58 million annually. With an estimated operating profit margin of around 15%, franchisees can expect an EBITDA (earnings before interest, taxes, depreciation, and amortization) of about $237,000 per year per location. This performance is competitive within the fast-casual chicken segment, where similar franchises report average revenues of roughly $1.75 million.
The brand’s streamlined menu and operational simplicity contribute to efficient management and cost control, with a prime cost (cost of goods sold plus labor) around 55.3%, which is favorable in the industry. Layne’s also invests in technology and innovation, such as online ordering and mobile app integration, to enhance customer experience and operational efficiency, further supporting profitability.
Conclusion
This comprehensive overview highlights Layne’s Chicken Fingers as an attractive franchise opportunity for restaurant owners seeking a proven brand with a strong identity, solid support system, and promising financial returns. With a well-established history, clear franchise conditions, and a straightforward process, Layne’s offers a pathway to success in the competitive fast-casual dining market.
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