According to Chicken Guy, what is included in the definition of 'goods'?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that it will: (a) purchase those proprietary products only from Chicken Guy or a third party designated and licensed by Chicken Guy to prepare and sell such products (collectively "designated suppliers"); (b) use the proprietary products only in accordance with the Manual and for items sold at the Franchised Restaurant; and (c) purchase from manufacturers, distributors, vendors and suppliers approved by Chicken Guy (collectively "approved suppliers") all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials and supplies used in the preparation of products (collectively "goods"), as well as advertising materials furniture, fixtures, equipment, smallwares, menus, menu boards, forms, paper and plastic products, packaging or other materials (collectively "materials") that meet the standards and specifications promulgated by Chicken Guy from time to time. Chicken Guy has the right to require that Franchisee use only certain brands and to prohibit Franchisee from using other brands. Chicken Guy may from time to time modify the list of approved brands (including certain brands of soft drinks and bottled beverages), and Franchisee shall not, after receipt of such modification in writing, reorder any brand that is no longer an approved brand. Chicken Guy may from time to time modify the list of designated suppliers and/or approved suppliers, and Franchisee shall not, after receipt of such modification in writing, order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, 'goods' are defined as all other food products, ingredients, spices, seasonings, mixes, beverages, materials, and supplies used in the preparation of products. These 'goods' are authorized for sale at Chicken Guy restaurants and must be purchased from manufacturers, distributors, vendors, and suppliers approved by Chicken Guy.
This definition is important for prospective franchisees because it dictates where they can source the items needed to operate their Chicken Guy restaurant. Franchisees are restricted to using only Chicken Guy-approved suppliers for these goods, ensuring consistency and quality across all franchise locations. This requirement helps maintain the brand's reputation but may also limit a franchisee's ability to negotiate better prices or source local products.
Chicken Guy also has the right to require that franchisees use only certain brands and to prohibit franchisees from using other brands. Chicken Guy may modify the list of approved brands, including certain brands of soft drinks and bottled beverages. Franchisees must comply with these modifications and not reorder any brand that is no longer approved. Chicken Guy may also modify the list of designated suppliers and/or approved suppliers, and franchisees must not order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier.
This level of control allows Chicken Guy to maintain uniformity and quality control across all its franchise locations. While this can be beneficial for brand consistency, it also means franchisees have less autonomy in choosing their suppliers and products. Prospective franchisees should carefully consider these restrictions and their potential impact on their operational costs and flexibility.