How do Chicken Guy and its affiliates contribute to the Regional Advertising Fund compared to other franchisees?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Chicken Guy shall have the right, in its sole discretion, to establish one or more regional advertising funds for Chicken Guy! Restaurants ("Regional Advertising Funds). If a Regional Advertising Fund is established for a geographical area that includes the Franchised Location, Franchisee shall contribute to that Regional Advertising Fund in the amount set forth in the attached Data Sheet, as subsequently modified by Chicken Guy. Chicken Guy! Restaurants operated by Chicken Guy and its affiliates in an area covered by a Regional Advertising Fund shall contribute to the Regional Advertising Fund on the same basis as comparable franchisees.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, when a Regional Advertising Fund is established, Chicken Guy restaurants operated by Chicken Guy and its affiliates contribute to the fund on the same basis as other comparable franchisees. This means that company-owned locations are expected to contribute to the Regional Advertising Fund at the same rate and under the same conditions as franchised locations. The specific amount that franchisees must contribute to the Regional Advertising Fund is detailed in the Data Sheet attached to the Franchise Agreement and may be modified by Chicken Guy.
Chicken Guy retains the right to establish one or more Regional Advertising Funds for Chicken Guy restaurants. If a fund is established for an area that includes a franchisee's location, the franchisee is required to contribute to that fund. Chicken Guy or its designee has sole discretion over the advertising, marketing, and public relations programs financed by the Regional Advertising Fund, including the creative concepts, materials, endorsements, and the placement and allocation of advertising and marketing materials.
Franchisees are required to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Regional Advertising Fund. However, Chicken Guy is not liable to the franchisee for ensuring that expenditures by each fund in any geographic area are proportionate or equivalent to the contributions to the fund by Chicken Guy restaurants operating in that geographic area. Chicken Guy also reserves the right to suspend contributions to and operations of each fund, terminate any fund, and defer or waive advertising fees for franchised or company restaurants under unique circumstances.