Feb. 6 at 4:02 PM
$HRL
Yes, the new Chi-Chi's restaurant entity has entered a licensing agreement with Hormel Foods, which owns the Chi-Chi's trademarks, to use the name for new restaurant locations.
The Deal: In December 2024, it was announced that Michael McDermott (son of the original Chi-Chi's founder, Marno McDermott) reached an agreement with Hormel Foods to revive the restaurant chain, with locations planned to open in 2025.
Licensing Terms: According to a 2025 SEC filing, the agreement involves a ten-year, renewable, exclusive license for the restaurant chain to use the Chi-Chi's name, logo, and signage.
Payment Structure: The agreement requires the new restaurant company to pay Hormel a royalty fee, reported as 1% of each restaurant's net sales, with a cap of
$35,000 per year, per restaurant.
Ownership Split: Hormel Foods has owned the Chi-Chi's brand since the restaurants closed in 2004, using it to sell grocery items like salsa and chips.
Many new items coming!!
