Who bears the cost, liability, and expense for developing, constructing, and equipping a Chicken Guy franchised restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant.
Chicken Guy will furnish to Franchisee prototypical plans and specifications for a Chicken Guy!
Restaurant, including requirements for dimensions, design, image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront and color scheme.
Chicken Guy reserves the right to require Franchisee to engage the services of an architect that has been approved by Chicken Guy.
It shall be Franchisee's responsibility to have the approved architect prepare all required construction plans and specifications to suit the shape and dimensions of the Franchised Location, and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions.
Franchisee shall use only registered architects, registered engineers, and professional and licensed contractors.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs, liabilities, and expenses associated with developing, constructing, and equipping their franchised restaurant. This includes selecting and obtaining site approval, adhering to Chicken Guy's construction standards, and using approved architects and contractors.
Chicken Guy provides prototypical plans and specifications for the restaurant, but the franchisee must ensure these plans comply with local ordinances, building codes, permit requirements, and lease restrictions. The franchisee is also responsible for obtaining all necessary permits and licenses. Chicken Guy has the right to inspect the construction process to ensure compliance with the franchise agreement, but this does not create any liability for Chicken Guy regarding the location, design, or construction of the restaurant.
This arrangement is typical in the franchise industry, where franchisees generally bear the costs of establishing their location while adhering to the franchisor's brand standards. Prospective Chicken Guy franchisees should carefully consider these costs and responsibilities when evaluating the franchise opportunity. They should also be prepared to manage the construction process and ensure compliance with all applicable regulations and Chicken Guy's requirements.