Can Chicken Guy's approval or rejection of a site be subject to conditions?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Within 15 days after Chicken Guy's receipt of the Real Estate Site Application, the Business Plan and any additional information that Chicken Guy may reasonably require, Chicken Guy's
Real Estate Review Committee shall review that information, evaluate the proposed site and advise Developer in writing whether it has approved a particular site. If Chicken Guy does not respond within that time period, Chicken Guy shall be deemed to have rejected the site. Chicken Guy's approval or rejection of a site may be subject to reasonable conditions as determined in its sole discretion. (A site which Chicken Guy has approved shall be referred to as an "Authorized Site.")
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy's Real Estate Review Committee will evaluate a proposed site within 15 days of receiving the Real Estate Site Application, Business Plan, and any additional required information. Chicken Guy will then advise the developer in writing whether the site has been approved. If Chicken Guy does not respond within the 15-day period, the site is considered rejected. Importantly, Chicken Guy's approval or rejection of a site can be subject to reasonable conditions, as determined by Chicken Guy in its sole discretion. A site that Chicken Guy approves, potentially with conditions, is referred to as an "Authorized Site."
This means that even if a prospective franchisee finds a location that seems ideal, Chicken Guy can impose specific requirements or stipulations that must be met before the site is officially approved. These conditions could relate to various aspects of the site, such as modifications to the building, specific lease terms, or other factors deemed relevant by Chicken Guy. The franchisee must be prepared to meet these conditions to secure the location.
It is crucial for potential Chicken Guy franchisees to understand that site approval is not guaranteed, even if the initial application is strong. The possibility of conditional approval adds another layer to the site selection process. Franchisees should carefully consider whether they are willing and able to meet any potential conditions before investing significant time and resources into a particular location. Open communication with Chicken Guy during the site selection process is essential to clarify expectations and ensure a smooth path to approval.