What alterations must a Chicken Guy franchisee make to the Leased Premises following the expiration or termination of the Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) The landlord agrees that, following the expiration or earlier termination of the Franchise Agreement, Developer shall have the right to make those alterations and modifications to the premises as may be necessary to clearly distinguish to the public the premises from a Chicken Guy!
Restaurant and also make those specific additional changes as Chicken Guy reasonably may request for that purpose.
The landlord also agrees that, if Developer fails to promptly make these alterations and modifications, Chicken Guy shall have the right to do so without being guilty of trespass or other tort so long as Chicken Guy makes repairs to the building caused by such alterations and modifications.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, after the Franchise Agreement expires or terminates, the franchisee (referred to as "Developer" in some sections) must alter the leased premises to clearly differentiate it from a Chicken Guy restaurant. These alterations include any specific changes that Chicken Guy reasonably requests for this purpose. This requirement is included in the lease agreement between the franchisee and the landlord. If the franchisee fails to make these changes promptly, Chicken Guy has the right to make the alterations themselves, without being considered trespass or other tort, provided they repair any damage to the building caused by the alterations.
This obligation is also reflected in an addendum to the lease agreement, where the landlord consents to the franchisee's use of Chicken Guy's proprietary signs, designs, and marks during the lease term. Upon expiration or termination of the lease, the landlord permits the franchisee to remove these items at the franchisee's expense, provided the franchisee repairs any resulting damage to the building. The landlord also agrees not to modify the lease in any way that would affect these requirements without Chicken Guy's prior written consent.
These provisions ensure that upon termination of the franchise agreement, the location can no longer be mistaken for a Chicken Guy restaurant, protecting the brand's image and preventing consumer confusion. The franchisee bears the initial responsibility for these alterations, but Chicken Guy retains the right to step in if the franchisee does not fulfill this obligation, ensuring compliance and protecting their brand. Prospective franchisees should carefully review the lease agreement and addendum to understand the full scope of these obligations and potential costs associated with these post-termination alterations.