PDQ Restaurants franchise startup costs run $1.5M–$2.5M for a fast-casual chicken concept built around a scratch kitchen philosophy. PDQ stands for People Dedicated to Quality — the brand emphasizes hand-breaded chicken, house-made sauces, and a fresh preparation model that differentiates it from conventional QSR chicken.
Pdq franchise costs at a glance
Total investment
$1.5M–$2.5M
Franchise fee
$40,000
Royalty
5%
Liquid capital required
$350,000
Net worth required
$1M
Source: Pdq Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $1,500,000–$2,500,000 (fast-casual chicken, scratch kitchen model)
Franchise fee: $40,000
Ongoing royalty: 5% of gross sales; advertising fund contribution applies
100+ locations primarily in the Southeast and Sun Belt; founded 2011 in Tampa, FL
Listed on the SBA Franchise Directory — eligible for expedited SBA loan processing
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a PDQ Restaurants franchise runs $1,500,000–$2,500,000. The scratch kitchen and open-kitchen design drive higher build-out costs than simpler QSR formats:
Franchise fee: $40,000
Real estate and building (or leasehold improvements): $500,000–$1,200,000 (freestanding drive-through with open kitchen)
Drive-through equipment and technology: $40,000–$100,000
Furniture, fixtures, and interior design: $80,000–$200,000
Signage and exterior branding: $30,000–$80,000
Technology and POS systems: $20,000–$50,000
Training and travel: $15,000–$40,000
Grand opening marketing: $15,000–$40,000
Working capital (3 months): $50,000–$130,000
Permits, insurance, professional fees: $20,000–$60,000
2 Ongoing fees
PDQ charges a 5% royalty on gross sales plus advertising fund contributions. The 5% rate is in line with premium fast-casual chicken peers. The scratch kitchen model requires more skilled kitchen labor than conventional QSR — operators should model labor cost as a percentage of sales carefully relative to the menu price premium PDQ commands.
3 Financing options
PDQ is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing paths:
SBA 7(a) loan: Covers franchise fee, leasehold improvements, kitchen equipment, drive-through systems, and working capital per the SBA 7(a) program. The $1.5M–$2.5M range spans upper-tier 7(a) structures.
SBA 504 loan: For ground-up freestanding drive-through builds or real estate purchase, SBA 504 pairs bank financing with an SBA-guaranteed debenture for fixed-asset projects up to $5.5M.
Equipment financing: Commercial fryers, open-kitchen equipment, and salad prep stations can be financed separately over 5–7 years.
Working capital line of credit: Covers ramp-up labor, pre-opening food costs, and early operational costs of scratch kitchen staffing.
Multi-unit development financing: PDQ's growth model often involves multi-unit development agreements; staged capital structures align draws to unit opening timelines.
4 Realistic ROI timeline
Premium fast-casual chicken drive-through concepts at the $1.5M–$2.5M investment level typically target break-even within 30–48 months. PDQ's premium menu price point and higher check average relative to conventional QSR chicken support stronger per-visit revenue. The open-kitchen transparency and scratch preparation are core brand differentiators in markets where quality-conscious consumers are the primary target. Southeast and Sun Belt suburban markets show the strongest brand resonance.
5 Who's a good fit
PDQ suits experienced QSR or premium fast-casual operators who want a quality-positioned chicken brand with strong consumer conviction and a differentiated scratch kitchen model. The $1.5M+ threshold requires substantial liquidity and operational depth. Financial benchmarks typically include net worth of $1M+ and liquid capital of $350K+. Multi-unit operators in Southeast and Sun Belt markets benefit from PDQ's existing regional brand awareness. For the wider fast-casual chicken financing landscape beyond this one brand, see restaurant industry financing and restaurant equipment financing options.
6 What lenders look for in a PDQ franchise application
PDQ is listed on the SBA Franchise Directory, enabling expedited SBA eligibility review. At $1.5M–$2.5M, PDQ sits at the upper tier of fast-casual chicken investment — requiring detailed financial documentation and higher equity thresholds. Lenders evaluate the following per SBA SOP 50 10 8:
Scratch kitchen labor as DSCR risk factor: PDQ's hand-breaded chicken and fresh-cut salads require skilled kitchen staff at a higher labor cost ratio than conventional QSR chicken chains. Lenders model PDQ labor as 33–38% of gross sales (vs. 25–30% at simpler QSR concepts). Operators must demonstrate a credible staffing plan and local labor market wage assumptions in the pro forma for DSCR to clear 1.15× post-labor.
$1.5M–$2.5M equity injection requirement: At this investment level, SBA's minimum 10% equity injection ($150K–$250K) is rarely sufficient — lenders on $1.5M+ fast-casual builds typically require 20–25% ($300K–$625K) in documented borrower funds. PDQ's corporate financial benchmarks (net worth $1M+, liquid capital $350K+) are aligned with lender requirements at this scale.
Open-kitchen build-out and equipment collateral: PDQ's open-kitchen design is a brand differentiator and a significant cost driver ($200K–$500K in kitchen equipment and build-out). Commercial fryers, breading stations, and salad prep equipment are partially specialized — lenders apply a 40–60% collateral discount to restaurant equipment, requiring offsetting collateral or additional equity.
Multi-unit development agreement DSCR modeling: PDQ often operates under multi-unit development agreements (MUDAs) requiring operators to commit to opening multiple locations on a schedule. Lenders underwriting a MUDA borrower model the cumulative debt load across all committed units — the DSCR for the first location must account for future loan draws under the development agreement.
Drive-through build capital structure: PDQ's standard freestanding drive-through with open kitchen is at the high end of fast-casual construction costs. For owned real estate or pad sites, SBA 504 is the preferred structure — bank loan covers the build-out and equipment, SBA debenture covers the real property component at fixed rates. Leased drive-through locations use SBA 7(a).
7 Apply for franchise financing
ClearValue Lending works with fast-casual chicken franchise operators on SBA 7(a), SBA 504, equipment, and working capital financing. Start at small business financing or apply for franchise financing at Find my match. Your file routes to the funding partners best matched to your file. See SBA 7(a) loans and how much an SBA loan actually costs before you apply, or compare fast-casual chicken peers already covered — Slim Chickens and Dave's Hot Chicken franchise costs.
Sources
PDQ Restaurants is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility review. — SBA Franchise Directory
SBA 7(a) loans finance premium fast-casual chicken franchise startups including drive-through builds, kitchen equipment, franchise fee, and working capital. SBA 504 is available for real estate-intensive projects. — SBA 7(a) Loan Program
All franchise cost and fee disclosures are governed by the FTC Franchise Rule requiring a Franchise Disclosure Document (FDD) be delivered at least 14 days before signing. — FTC Franchise Rule — 16 CFR Part 436
Qualifying commercial fryers, open-kitchen equipment, and drive-through technology placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946
Frequently asked questions
How much does a PDQ franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $1,500,000–$2,500,000. Real estate, open-kitchen build-out, and kitchen equipment are the primary cost drivers.
What does PDQ stand for?
PDQ stands for People Dedicated to Quality — the name reflects the brand's commitment to hand-breaded chicken tenders, house-made sauces, and fresh-cut salads prepared in an open kitchen visible to guests.
What is the PDQ royalty rate?
PDQ charges a 5% royalty on gross sales plus advertising fund contributions. The scratch kitchen model requires skilled kitchen labor, so operators should model labor cost carefully alongside the royalty in their unit economics.
Can I finance a PDQ franchise with an SBA loan?
Yes. PDQ is on the SBA Franchise Directory. SBA 7(a) can cover the build-out, kitchen equipment, drive-through systems, franchise fee, and working capital. SBA 504 is available for ground-up freestanding builds.
Where is PDQ strongest?
PDQ operates primarily in the Southeast and Sun Belt states, with strongest presence in Florida, the Carolinas, and surrounding markets. The brand was founded in Tampa, FL in 2011 and retains deep market penetration in its home region.
What DSCR do lenders require for a PDQ franchise?
SBA guidelines require a minimum 1.15× DSCR. For PDQ, lenders model labor at 33–38% of gross sales (higher than conventional QSR chicken) due to the scratch kitchen staffing requirement. The 5% royalty is included as a fixed operating cost. Lenders stress-test at 80% of projected AUV to confirm DSCR holds under ramp conditions — the open-kitchen model with premium price point supports higher check averages but requires demonstrating sufficient consumer demand in the trade area.
How much equity do I need to open a PDQ franchise?
SBA requires a minimum 10% equity injection of total project cost — $150K–$250K on $1.5M–$2.5M. Lenders on fast-casual chicken builds at this investment level typically require 20–25% ($300K–$625K) in documented borrower funds. PDQ's corporate financial benchmarks (net worth $1M+, liquid capital $350K+) are aligned with what lenders will require. Equity sources include personal savings, a ROBS plan using retirement funds, or real estate equity — all must be documented in the SBA loan package.
Summary:
PDQ Restaurants franchise startup costs run $1.5M–$2.5M for a fast-casual chicken concept built around a scratch kitchen philosophy. PDQ stands for People Dedicated to Quality — the brand emphasizes hand-breaded chicken, house-made sauces, and a fresh preparation model that differentiates it from conventional QSR chicken.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
