Does Chicken Guy assume liability if it disapproves a transfer for legitimate business purposes?

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy's decision regarding a proposed transfer does not create any liability on its part to the developer or the proposed transferee if Chicken Guy disapproves the transfer pursuant to Section 10 or for other legitimate business purposes. Chicken Guy has the right to communicate and counsel with the developer and the proposed transferee regarding any aspect of the proposed transfer, without any liability to the developer or the proposed transferee.

This means that if Chicken Guy disapproves a transfer for valid business reasons, the franchisee or potential buyer cannot hold Chicken Guy liable for any resulting financial losses or damages. This protects Chicken Guy from potential lawsuits if they reject a transfer application based on legitimate concerns.

This clause is typical in franchise agreements, as franchisors need to maintain control over who enters their system to protect the brand and ensure consistent quality. Prospective Chicken Guy franchisees should understand that Chicken Guy has broad discretion in approving or disapproving transfers and will not be liable for disapprovals made for legitimate business reasons.