Besides restaurants and catering services, through what other methods or channels of distribution may Chicken Guy and its affiliates merchandise and distribute goods and services?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
lets that we own, or from other channels of distribution or competitive brands that we control.
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Except as described above, we and our affiliates may establish other franchised or companyoperated outlets under the Proprietary Marks and/or under other marks that may compete with your location. We and our affiliates may merchandise and distribute goods and services identified by the Proprietary Marks through methods or channels of distribution other than restaurants and catering services. We reserve all rights to use and license the System other than those we expressly grant you under the Development Agreement or Franchise Agreement. We have no obligation to pay any compensation to you if we exercise these rights.
ITEM 13 TRADEMARKS
We grant you the right to operate a restaurant under the name "Chicken Guy!" and to use our other current or future Proprietary Marks in the operation of your Franchised Restaurant. Under a May 17, 2019 License Agreement with our parent, Chicken Concept, LLC, we have the right to use and permit our franchisees and licensees to use the name and mark "Chicken Guy!" in addition to certain related
trademarks, service marks and other commercial symbols. Chicken Concept, LLC has the right to terminate the License Agreement if we commit a breach of the License Agreement.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy and its affiliates have the right to merchandise and distribute goods and services identified by their Proprietary Marks through methods or channels of distribution other than restaurants and catering services. This means that Chicken Guy retains broad rights to sell branded merchandise and products through various avenues beyond the traditional restaurant setting. These alternative channels could include retail partnerships, online stores, or other distribution agreements.
Chicken Guy also reserves the right to sell products and services in the Protected Area using the Proprietary Marks and/or different marks through other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing efforts. While franchisees may be permitted to advertise their Franchised Restaurant through the Internet and other electronic means, Chicken Guy retains the right to approve and control any electronic, mobile, or Internet presence that uses or displays any of the Proprietary Marks.
This reservation of rights has significant implications for prospective franchisees. While franchisees operate their restaurants, Chicken Guy can independently pursue additional revenue streams through other distribution channels, potentially competing with franchisees within their own territories. The FDD makes it clear that franchisees will not receive any compensation for Chicken Guy's exercise of these rights. This is a fairly standard practice in franchising, where franchisors often retain control over alternative distribution channels to maximize brand reach and revenue.