What is the amount of the surety bond that Chicken Guy has posted in Illinois due to its financial condition?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
om/tips-statepages/illinois/
EXHIBIT TO ADDITIONAL DISCLOSURE DOCUMENT DISCLOSURES REQUIRED BY THE STATE OF ILLINOIS
SURETY BOND
*800027242
We, Chicken Guy (Franchisor), LLC, a limited liability company with principal offices at 4700 Millenia Boulevard, Suite #400, Orlando, Florida 32839, as Principal, and Atlantic Specialty Insurance Company, a surety company with principal offices located at One State Street Plaza, 31st Floor, New York, NY 10004 incorporated under the laws of the State of New York and authorized to conduct business in the State of Illinois, as Surety, are indebted to the Administrator, Illinois Attorney General, 500 South Second Street, Springfield, Illinois 62706, as Obligee, in the sum of Fifty Thousand Dollars ($50,000) to be paid to the Obligee or its legal representatives, successors, or assigns, for which payment we bind ourselves and our legal representatives and successors, jointly and severally.
WHEREAS, the above-named Principal has made application to the Administrator for registration of the offer of its franchises under the Illinois Franchise Disclosure Act and is required pursuant to said law to provide the Administrator with a Surety Bond.
WHEREAS, the Principal proposes to offer in Illinois Chicken Guy! restaurant franchise(s) within one year from the effective date of the proposed registration under the Illinois Franchise Disclosure Act; and
WHEREAS, the Obligee in
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, to register its franchise offering in Illinois, Chicken Guy posted a surety bond in the amount of $50,000. This bond is in place to ensure Chicken Guy complies with the Illinois Franchise Disclosure Act. It also ensures that franchisees are compensated for damages suffered due to violations of the Act, including misrepresentations or failure to disclose the franchisor's true financial condition.
The surety bond is payable to the Administrator, Illinois Attorney General, and is intended to protect franchisees in the event Chicken Guy fails to meet its obligations under the Franchise Agreement, such as providing real estate, improvements, equipment, inventory, training, and other items included in the franchise offering.
This requirement indicates that Illinois has specific regulations in place to protect potential franchisees, especially concerning the financial stability and transparency of the franchisor. Prospective Chicken Guy franchisees in Illinois can take some assurance from the fact that this bond is in place, offering a degree of financial protection should the franchisor fail to meet its obligations.