Does Chicken Guy assume any liability or obligation with respect to the Franchised Location, design, construction, or furnishings, fixtures, and equipment, despite its right to recommend, approve, and inspect?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the right of Chicken Guy to recommend and approve the Plans, architects, project managers and general contractors and to inspect the construction work at the Franchised Restaurant, Chicken Guy and its designees shall have no liability or obligation with respect to the Franchised Location, the design or construction of the Franchised Restaurant or the furnishings, fixtures and equipment to be acquired; Chicken Guy's rights being exercised solely for the purpose of ensuring compliance with the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, while Chicken Guy retains the right to recommend, approve, and inspect various aspects of the franchised restaurant, it does not assume liability or obligation for the Franchised Location, its design or construction, or the furnishings, fixtures, and equipment acquired for the restaurant. Chicken Guy's rights are exercised solely to ensure compliance with the terms and conditions of the franchise agreement.
This means that the franchisee bears the ultimate responsibility for the success and compliance of these elements. Even though Chicken Guy may offer guidance or require certain standards, the franchisee is responsible for any issues or liabilities that may arise from the location, design, construction, or equipment. This includes ensuring compliance with all applicable laws, ordinances, and regulations, such as the Americans with Disabilities Act (ADA) and environmental regulations.
Furthermore, Chicken Guy assumes no liability or responsibility for evaluating the Franchised Location's soil for hazardous substances or inspecting any structure for asbestos or other toxic materials. It is the franchisee's sole responsibility to obtain satisfactory evidence that the location is free from environmental contamination and complies with ADA requirements. This underscores the importance of thorough due diligence on the part of the franchisee before finalizing the location and commencing construction.
In practice, this means a prospective Chicken Guy franchisee should conduct thorough due diligence, engage qualified professionals (architects, engineers, contractors), and secure appropriate insurance coverage to mitigate potential risks associated with the Franchised Location, its construction, and equipment. While Chicken Guy provides prototypical plans and may offer guidance, the franchisee is ultimately accountable for ensuring everything meets required standards and regulations.