What action must a Chicken Guy franchisee take prior to any change in ownership interests?

According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee must comply with Section 19 of the franchise agreement before any change in ownership interests. Additionally, the franchisee must execute addenda to the attached Data Sheet to ensure the information contained within remains true, accurate, and complete at all times. This requirement applies if the franchisee is a corporation, limited liability company, or partnership.

For corporations, the franchisee must maintain a current list of all owners of record and all beneficial owners of any class of voting securities, including the number of shares owned by each. Limited liability companies must maintain a current list of all members and their percentage membership interest. Partnerships must maintain a current list of all owners and their percentage ownership interest.

These stipulations ensure that Chicken Guy maintains an updated record of the ownership structure of its franchises. This allows Chicken Guy to monitor and control who is involved in the operation of their franchised restaurants. By requiring compliance with Section 19 and the execution of addenda, Chicken Guy aims to maintain accurate information and exercise its rights regarding transfers, as detailed in other sections of the Franchise Agreement.