Can Chicken Guy charge non-approved suppliers testing or inspection fees?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Chicken Guy and its affiliates disclaim all express or implied warranties concerning any approved goods, materials or services, including, without limitation, any warranties as to merchantability, fitness for a particular purpose, availability, quality, pricing or profitability. Franchisee acknowledges that Chicken Guy and its affiliates may, under appropriate circumstances, receive fees, commissions, royalties, or other consideration from approved suppliers based on sales to franchisees, and that Chicken Guy may charge non-approved suppliers reasonable testing or inspection fees.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, Chicken Guy may charge non-approved suppliers reasonable testing or inspection fees. This means that if a supplier is not already approved by Chicken Guy, they may be subject to fees for testing or inspection to ensure they meet the brand's standards.
This policy is important for prospective franchisees because it highlights Chicken Guy's control over the supply chain and quality standards. While franchisees may propose new suppliers, Chicken Guy retains the right to assess and approve them, potentially incurring costs for the supplier. This helps maintain consistency and quality across all Chicken Guy locations.
It is also important to note that Chicken Guy may receive fees, commissions, royalties, or other consideration from approved suppliers based on sales to franchisees. This creates a potential incentive for Chicken Guy to favor certain suppliers, which franchisees should be aware of when considering alternative suppliers. Franchisees should inquire about the specific criteria and costs associated with supplier approval to make informed decisions about their purchasing options.