What actions is a Chicken Guy franchisee required to take after receiving an inspection report?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Following each inspection, Chicken Guy will provide Franchisee an inspection report listing Franchisee's score on the inspection and those conditions at the Franchised Restaurant that must be rectified. Franchisee shall take all necessary steps to immediately correct any deficiencies detected during these inspections (regardless of Franchisee's inventory), including, without limitation, ceasing further sale of unauthorized menu items and ceasing further use of any equipment, advertising materials or supplies that do not conform with the standards and requirements promulgated by Chicken Guy from time to time.
If Franchisee fails to achieve a passing score on an inspection, Chicken Guy may, in its sole discretion, require that Franchisee's to Operating Principal and/or one or more managerial employees of the Franchised Restaurant attend and successfully complete an additional management training program (the length of which will not exceed 10 consecutive days) to be held at a location designated by Chicken Guy. Franchisee shall pay a tuition charge as established by Chicken Guy from time to time for this training program and the travel, living, food and other incidental expenses incurred by Franchisee's employees while attending this training program.
(4) If Franchisee fails to achieve a passing score on an inspection, the inspection report shall constitute a notice of default. If Franchisee fails to achieve a passing score on the next inspection (which shall be conducted at least 30 days after Franchisee's receipt of the inspection report for the prior inspection), Chicken Guy may terminate this Agreement, without opportunity to cure, by providing Franchisee written notice of termination along with the inspection report.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, after an inspection, Chicken Guy will provide the franchisee with a report detailing their score and any deficiencies that need correction. The franchisee is then required to take immediate action to rectify these deficiencies, regardless of their current inventory. This includes ceasing the sale of any unauthorized menu items and discontinuing the use of any equipment, advertising materials, or supplies that do not meet Chicken Guy's standards.
If a Chicken Guy franchisee fails to achieve a passing score on an inspection, Chicken Guy has the discretion to require the franchisee's Operating Principal and/or managerial employees to attend and successfully complete an additional management training program. This program will not exceed 10 consecutive days and will be held at a location designated by Chicken Guy. The franchisee is responsible for paying a tuition charge for this training, as well as covering the travel, living, food, and other incidental expenses incurred by their employees while attending the program.
Furthermore, according to the 2025 FDD, failing to achieve a passing score on an inspection constitutes a notice of default. If the franchisee fails to achieve a passing score on the subsequent inspection, which will be conducted at least 30 days after the franchisee receives the initial inspection report, Chicken Guy has the right to terminate the Franchise Agreement without providing an opportunity to cure the default. This termination will be enacted by providing the franchisee with written notice of termination along with the inspection report.