Does Chicken Guy assume liability if it disapproves a Transfer?

According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy's decision regarding a proposed transfer does not create any liability on its part to the franchisee or the proposed transferee if it disapproves the transfer, provided the disapproval is pursuant to Section 19 of the agreement or for other legitimate business purposes. Chicken Guy also assumes no liability if it approves a transfer and the transferee subsequently experiences financial difficulties.

This means that if Chicken Guy rejects a potential buyer for your franchise, you cannot hold them responsible for any financial losses you might incur as a result of the failed sale. The FDD specifies that Chicken Guy can disapprove a transfer for reasons outlined in Section 19 of the franchise agreement or for other valid business reasons. This protects Chicken Guy from potential lawsuits if they believe a transfer would negatively impact the brand or the financial stability of the franchise.

Furthermore, Chicken Guy has the right to communicate and counsel with both the franchisee and the proposed transferee regarding any aspect of the proposed transfer without incurring any liability. This allows Chicken Guy to provide guidance and express concerns about the transfer without fear of legal repercussions, ensuring they can maintain brand standards and protect the overall franchise system.