What is an 'Authorized Site' according to the Chicken Guy FDD?
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, an 'Authorized Site' is a location that Chicken Guy has approved for a franchised restaurant. The approval process involves the franchisee (referred to as 'Developer' in the FDD) submitting a Real Estate Site Application and a Business Plan to Chicken Guy for review. Chicken Guy's Real Estate Review Committee then evaluates the proposed site based on criteria such as demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, and the site's physical characteristics. Chicken Guy will advise the franchisee in writing whether it has approved the site.
Chicken Guy's approval may be subject to certain conditions, which are determined at their discretion. It is important to note that Chicken Guy's approval of a site does not guarantee any specific sales volume or level of profitability for the restaurant at that location. Furthermore, Chicken Guy assumes no liability or responsibility for evaluating the site's soil for hazardous substances, inspecting structures 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 franchisee's sole responsibility to obtain assurances that the site is free from environmental contamination and complies with ADA requirements.
Within 30 days of Chicken Guy approving a site, they will prepare and forward a Franchise Agreement for the Authorized Site to the franchisee. The Franchise Agreement will be in the standard form included in the Franchise Disclosure Document. The franchisee must adhere to the Development Schedule, which includes obtaining Chicken Guy's written approval of the site by the specified date. Failure to obtain site approval by this date constitutes a material breach of the Development Agreement, potentially leading to termination of the agreement.