Are company-operated Chicken Guy restaurants required to contribute to a Regional Advertising Fund or Co-op?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
each fund annually, which will be available to you upon written request. Company-operated Restaurants contribute to the various advertising funds and cooperatives an amount equivalent to that contributed by comparable franchised Chicken Guy! Restaurants. In spending advertising monies, we are not obligated to make expenditures for any franchisee that are equivalent or proportionate to that franchisee's contribution or to ensure that any particular franchisee benefits directly or on a pro rata basis from expenditure of the funds.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, company-operated restaurants are required to contribute to the various advertising funds and cooperatives. The contribution amount from company-operated restaurants is equivalent to that contributed by comparable franchised Chicken Guy restaurants. This ensures that both company-operated and franchised locations support regional advertising efforts equally.
Currently, Chicken Guy has not established any Regional Advertising Funds or Co-ops as of the date of the FDD. However, the franchise agreement stipulates that if such funds or co-ops are established in the future, both company-operated and franchised Chicken Guy restaurants within the defined geographic area will be obligated to contribute. The geographic area covered by a Regional Advertising Fund or Co-op will be determined by Chicken Guy based on the location of restaurants and the reach of media in the area.
The funds collected can be used for advertising, marketing, and public relations programs. Chicken Guy retains sole discretion over the creative aspects, materials, and placement of advertising. While contributions are mandatory for both company-owned and franchised locations in a region, Chicken Guy is not obligated to ensure that expenditures benefit each franchisee directly or proportionally to their contribution. This means that advertising spend may not be evenly distributed across all locations.