factual

Before acquiring any leasehold or ownership interest in a site for a Chicken Guy restaurant, what approvals must I obtain?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

As noted in Item 1, you should not acquire any leasehold or ownership interest in a site for your Franchised Restaurant until you have been approved as a franchisee, and we have approved the site in writing.

You must submit a Real Estate Site Application (containing that information as we may reasonably require) for a proposed site which you reasonably believe conforms to site selection criteria we establish

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, you must be approved as a franchisee and receive written site approval from Chicken Guy before acquiring any leasehold or ownership interest in a site for your Franchised Restaurant.

To gain site approval, you must submit a Real Estate Site Application to Chicken Guy that contains all information they reasonably require. This application should demonstrate that the proposed site meets Chicken Guy's established site selection criteria. These criteria include factors such as demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition from other businesses, proximity to other businesses (including existing Chicken Guy locations), the nature of nearby businesses, commercial characteristics (like purchase price, rental obligations, and lease terms), and the size, appearance, physical characteristics, and site plan of the premises. Chicken Guy may also use third-party real estate analysts to evaluate potential sites.

Along with the Real Estate Site Application, you must provide Chicken Guy with financial statements, business plans, and other information about yourself and the proposed restaurant's development and operation, including investment and financing plans. Chicken Guy's Real Estate Review Committee will then evaluate the proposed site based on the criteria mentioned above. Within 15 days of receiving your complete application, business plan, and any additional required information (and the signed Franchise Agreement with all requisite fees, if applicable), Chicken Guy will inform you in writing whether the site has been approved. Failure to respond within this timeframe is considered a denial. Any approval may be subject to conditions at Chicken Guy's discretion.

If you plan to lease or sublease the location, you must provide Chicken Guy with a copy of the fully-executed lease or sublease within 90 days of site approval (or within 30 days of signing the Franchise Agreement and Nontraditional Location Addendum for Nontraditional Restaurants). The lease term must cover at least the initial term of the Franchise Agreement, including any renewal terms.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.