Guthrie's
The total investment to open a Guthrie's franchise ranges from $231,050 to $737,000. The initial franchise fee is $35,000. Ongoing royalties are 6% plus a 2% advertising fee.
What is the Guthrie's franchise?
Guthrie's began in Haleyville, Alabama, in 1965, when Hal Guthrie opened a drive in restaurant that became a multigenerational family business. In 1978, the restaurant shifted its focus primarily to chicken fingers, supported by a signature sauce created through a family recipe contest won by Hal's son, Hud Guthrie. Hal's eldest son, Chris Guthrie, joined him in opening the Auburn, Alabama, location in 1982, establishing the chicken finger only concept used across the brand. A third location opened in Athens, Georgia, by 1984, and the company had eight family owned locations by 1997. Guthrie's is headquartered at 2320 Moore's Mill Road, Suite 600, Auburn, Alabama 36830, and was incorporated as an Alabama corporation on January 5, 2004. The brand operates in 12 confirmed states, including Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Kentucky, Mississippi, Nevada, Ohio, Tennessee, and West Virginia. Alabama had 33 stores as of late 2025. Guthrie's had more than 75 locations across the United States as of 2026, giving investors a long operating history alongside substantial room for expansion.
The U.S. Full Service Restaurants sector is projected to grow from $336.22 billion in 2024 to $807.83 billion by 2033, at a compound annual growth rate of 10.23% from 2025 to 2033. Globally, the full service restaurant market was estimated at $14.72 billion in 2024 and is projected to reach $23.12 billion by 2035 at a CAGR of 4.19%. North America held 31% of global revenue as of 2025. Millennials and Gen Z are spending more on dining out as disposable income rises, approximately 60% of consumers prefer diverse culinary experiences, and nearly 40% of diners seek environments that accommodate health and dietary preferences. Delivery partnerships with DoorDash and Uber Eats, contactless payments, and digital ordering are also changing fast casual dining. Compared with burger and sandwich QSR segments, chicken fingers remain a relatively fragmented category, giving established regional brands such as Guthrie's room to expand nationally.
The initial franchise fee for one Guthrie's restaurant is $35,000. Quick service and fast casual concepts generally charge initial fees from $20,000 to $50,000, while QSR fees range from $6,250 to $90,000. Guthrie's estimates total initial investment at approximately $231,050 to $569,200, excluding real estate, with another cited range of $234,050 to $737,000 based on the source and build out assumptions. Geography, lease terms, kitchen equipment, and whether a new site or an existing food service space is used can affect the cost. The investment includes $75,000 payable directly to the franchisor or its affiliate. The ongoing royalty is 6% of gross sales, compared with typical QSR and fast casual royalties of 4% to 8%. An advertising royalty of 2% of gross sales brings the stated ongoing fee burden to approximately 8% before local marketing. Area development agreements also carry a development fee described in Item 5 of the Franchise Disclosure Document, with part of that fee applied to the initial franchise fee when the agreement is executed. Guthrie's has introduced a smaller real estate footprint model for new and emerging markets. The brand falls within a mid tier investment range, below full service concepts that can exceed $1 million in startup costs but above lighter food formats.
Guthrie's uses a focused menu of hand breaded chicken fingers, signature sauce, crinkle cut fries, coleslaw, and Texas toast. The limited menu can support training and inventory control, although consistent execution still requires hands on instruction in the brand's preparation methods. Former CEO Joe Kelly Guthrie described the approach this way: "Our food is simple. Our process is simple," while noting that "nothing we do is extremely complicated, however there are many small secrets and little things that go into our entrepreneurial equation to produce the best chicken fingers in the world." The company highlights efficient operations, marketing support, balanced labor costs, ongoing training, and field support. Its franchise model is directed toward engaged owners who want to build community rather than passive investors. Recent expansion agreements use defined geographic territories. The 100 unit Western U.S. agreement covers Nevada, Idaho, Arizona, New Mexico, and Colorado, while planned markets include Raleigh, Charlotte, Nashville, and Northern Ohio. Single unit agreements in the Carolinas and Midwest are guided by a market specific real estate strategy.
The $15 billion chicken finger segment, focused menu, and lean labor model may support lower food and labor percentages than full service or broader menu concepts, but investors must verify the economics. Guthrie's growth from 26 family owned locations in 2005 to more than 75 locations across the United States by 2026 indicates sustained operating and franchisee interest. Buyers should speak directly with franchisees and review the complete FDD before building a unit level financial model.
Guthrie's had 26 family owned locations in 2005 and launched franchising in April 2005, initially targeting Florida, Georgia, Louisiana, and Mississippi. By 2026, it had grown to more than 75 locations across 12 states. In December 2022, the company signed a 100 unit agreement with existing franchisees Stephen Galbraith and Matt Dahlhauser of Dahlhauser Galbraith Operating Cos., which then owned five Guthrie's locations in Alabama and Georgia. The agreement includes a 50 unit area development deal and an option for 50 additional restaurants in Nevada, Idaho, Arizona, New Mexico, and Colorado. In 2025, Guthrie's marked its 60th anniversary and entered the Carolinas. Its first South Carolina location opened in Lexington on April 22, 2025. The first North Carolina location was planned for Raleigh on November 4, 2025, with 50 to 60 jobs projected and nine additional locations across both Carolinas planned within six months. On January 14, 2026, Guthrie's Franchising, Inc. appointed Tom Carr President and Chief Executive Officer, succeeding co owner and founding family member Joe Kelly Guthrie. Carr has over 25 years of leadership and marketing experience and previously served as a key executive at Chicken Salad Chick. Guthrie's also introduced its smaller real estate footprint model to support expansion in higher cost markets.
The target franchisee is an engaged, community oriented operator interested in the brand's operational simplicity, six decade history, and single or multi unit ownership. Guthrie's clearly supports multi unit and area development, as shown by the 100 unit Western U.S. agreement and the nine location Carolina pipeline. Territories connected to the Dahlhauser Galbraith agreement include Nevada, Idaho, Arizona, New Mexico, and Colorado. Other available or developing markets include the Carolinas, the Mid Atlantic, Northern Ohio, and Nashville. Alabama, with 33 of approximately 75 locations, provides the main operating base and shows how the model functions within a defined geographic market. The business has been developed across multiple generations since 1965, giving the operating system 60 years of refinement compared with younger concepts.
Guthrie's has expanded from eight family owned locations in 1997 to more than 75 locations across 12 states by 2026. Growth accelerated after franchising began in April 2005 and the 100 unit Western U.S. agreement was signed in December 2022. Depending on format and market, the franchise investment ranges from approximately $231,050 to $737,000. Tom Carr became CEO in January 2026 with over 25 years of leadership experience, including work at Chicken Salad Chick. PeerSense provides franchise research tools covering SBA lending history, Loan Activity Scores, location maps with Google ratings, FDD financial data, and comparison features. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders and does not lend or approve loans.
Loan Activity Score
57/100
SBA Default Rate
0.0%
Active Lenders
10
According to its Franchise Disclosure Document or public business records, Guthrie's has 11 locations, all owned by franchisees. Public SBA loan records show 10 lenders made 18 loans to franchisees of Guthrie's. PeerSense calculates Guthrie's's score as 57 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 1965 · 11 locations
$231,050 to $737,000
$35,000
11
11 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for Guthrie's
18
Total SBA loans
$559K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Guthrie's
Loan Activity Score Breakdown
Growing (10 to 24 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
0.0%
vs 10.3% peer avg
SBA Loans
18
Total Volume
$10.1M
Active Lenders
10
2 selective
States
5
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Guthrie's based on SBA lending data
SBA Default Rate
0.0%
10.3% below peer avg
SBA Loan Volume
18 loans
Across 10 lenders
Lender Diversity
10 lenders
Avg 1.8 loans per lender
Investment Tier
Significant investment
$231,050 to $737,000 total
Payment Estimator
Estimated Monthly Payment
$2,392
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Guthrie's, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman