Does Chicken Guy's approval of a site guarantee a certain sales volume or profitability?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
**(3) Chicken Guy's approval of one or more sites is not a representation or a promise by Chicken Guy that a Chicken Guy!
Restaurant at the Authorized Site will achieve a certain sales volume or a certain level of profitability.
Similarly, Chicken Guy's approval of one or more sites and its rejection of other sites is not a representation or a promise that an Authorized Site will have a higher sales volume or be more profitable than a site which Chicken Guy did not approve.
Chicken Guy assumes no liability or responsibility for: (a) evaluation of an Authorized Site's soil for hazardous substances; (b) inspection of any structure on the Authorized Site for asbestos or other toxic or hazardous materials; (c) compliance with the Americans with Disabilities Act ("ADA"); or (d) compliance with any other applicable law.
It is Developer's sole responsibility to obtain satisfactory evidence and/or assurances that the Authorized Site (and any structures thereon) is free from environmental contamination and in compliance with the requirements of the ADA.**
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, site approval does not guarantee sales volume or profitability. Chicken Guy states explicitly that approving a site is not a representation or promise that a Chicken Guy restaurant at that location will achieve a specific sales volume or profitability level. Furthermore, Chicken Guy's approval of one site versus another does not guarantee that the approved site will perform better than a rejected one. This means that while Chicken Guy reviews and approves sites based on its criteria, the ultimate success of the location depends on various factors beyond the initial site selection.
This disclaimer is typical in the franchise industry, as franchisors cannot accurately predict the success of each location due to market fluctuations, local competition, and the franchisee's operational capabilities. Chicken Guy also clarifies that it assumes no liability or responsibility for evaluating the site's soil for hazardous substances, inspecting for asbestos or other toxic materials, ensuring compliance with the Americans with Disabilities Act (ADA), or ensuring compliance with any other applicable law. It is the developer's (franchisee's) sole responsibility to obtain satisfactory evidence that the site is free from environmental contamination and complies with ADA requirements.
Prospective Chicken Guy franchisees should understand that site approval is only one step in the process and does not guarantee financial success. It is crucial for franchisees to conduct their own due diligence, including market research, financial projections, and legal compliance checks, to assess the potential of the approved site. Franchisees should also consider factors such as local demographics, traffic patterns, and competition to determine if the site aligns with their business goals and financial capabilities. Relying solely on Chicken Guy's site approval without independent verification could pose a significant financial risk.