Can Chicken Guy charge a fee for developing, reviewing, and approving a franchisee's website?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use the Proprietary Marks on any Internet domain name, e-mail address or in the operation of any Internet website without our prior written consent. We may grant or withhold our consent in our sole discretion and may condition our consent on such requirements as we deem appropriate, including, among other things, that you obtain our prior written approval of: (1) any and all Internet domain names and home page addresses related to the Franchised Restaurant; (2) the proposed form and content (including any visible and non-visible content such as meta-tags) of any website related to the Franchised Restaurant; (3) your use of any hyperlinks or other links; (4) your use of any materials (including text, video clips, photographs, images and sound bites) in which any third party has an ownership interest; and (5) any proposed modification of your website. We may designate the form and content of your website and/or require that any such website be hosted by us or a third party designated by us, using one or more websites that we own and/or control. In addition, we may require you to establish hyperlinks to our website or another website designated by us. We may charge you a fee for developing, reviewing and approving your website and/or for hosting the website.
Source: Item 13 — TRADEMARKS (FDD pages 36–38)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the right to charge franchisees a fee for developing, reviewing, and approving their websites. This also extends to hosting the website. Chicken Guy maintains discretion over whether to grant consent for a franchisee's use of the Proprietary Marks on any Internet domain name, e-mail address, or in the operation of any Internet website.
This means that as a prospective franchisee, you must obtain prior written approval from Chicken Guy for various aspects of your website, including domain names, content, hyperlinks, and any third-party materials used. Chicken Guy can also designate the form and content of your website and require that it be hosted by them or a third party they designate.
The ability for Chicken Guy to charge these fees and control website content is not uncommon in franchising, as franchisors often want to maintain brand consistency and ensure compliance with marketing standards. However, it is important for a potential franchisee to understand the potential costs associated with website development, review, approval, and hosting, as these can impact the overall investment and operating expenses of the franchise. It would be prudent to inquire about the typical range of these fees and the specific criteria Chicken Guy uses for website approval during the due diligence process.