factual

On what basis do Chicken Guy restaurants operated by Chicken Guy and its affiliates contribute to the Brand Fund?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

Restaurants operated by Chicken Guy and its affiliates shall contribute to the Brand Fund on the same basis as comparable franchisees.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy restaurants operated by Chicken Guy and its affiliates contribute to the Brand Fund on the same basis as comparable franchisees. This means that company-owned restaurants and those owned by Chicken Guy's affiliates are expected to contribute to the Brand Fund under the same terms and conditions as franchised locations. The Brand Fund is used for marketing, advertising, and public relations efforts to enhance and protect the Chicken Guy system and its proprietary marks.

This arrangement ensures that Chicken Guy and its affiliates are aligned with franchisees in supporting the brand's marketing initiatives. It also means that company-owned stores are not exempt from contributing to the fund that supports the overall brand. The amount that franchisees contribute to the Brand Fund is set forth in the Data Sheet, up to a maximum annual contribution of $30,000 during each of Chicken Guy's fiscal years.

Prospective franchisees should note that Chicken Guy has sole discretion over the use of the Brand Fund and can modify the contribution amounts. Franchisees are required to participate in all advertising, marketing, and promotional programs instituted by the Brand Fund. This contribution structure is fairly typical in franchising, where all stakeholders contribute to a common marketing fund, but the specific terms and Chicken Guy's control over the fund are important for franchisees to understand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.