Can Chicken Guy concentrate purchases with one supplier to obtain lower prices?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
basis pending our further evaluation of the supplier. We may concentrate purchases with one or more suppliers to obtain lower prices and/or the best advertising support and/or services for any group of Chicken Guy! Restaurants or any other group of restaurants operated or franchised by us or our affiliates. We may establish commissaries and distribution facilities owned and operated by us or an affiliate that we will designate as an approved supplier.
If you propose to purchase any goods or materials (that you are not required to purchase from us, our affiliates or designated suppliers) from a supplier that we have not previously approved, you must submit to us a written request for such approval, or you must request that the supplier do so. We will provide our standards and specifications to you or to the proposed supplier, subject to the supplier's execution of a confidentiality agreement in a form acceptable to us. We have the right to require, as a condition of approval, that our representatives be permitted to inspect the supplier's facilities and that such information, specifications and samples as we reasonably designate be delivered to us and/or to an independent, certified laboratory designated by us for testing prior to granting approval. In addition to product testing, a facility audit may be required. A fee not to exceed our actual costs of reviewing the supplier or distributor and auditing the facility, if needed, may be charged by us and shall be paid by you. We will notify you within 60 days after receipt of your request as to whether you are authorized to purchase such products from that supplier, and if such authorization is granted, you may contract with the approved supplier. We may periodically require that the testing be performed again at your expense to ensure continued compliance with our specifications.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy may concentrate purchases with one or more suppliers to obtain lower prices and/or the best advertising support and/or services for any group of Chicken Guy Restaurants or any other group of restaurants operated or franchised by them or their affiliates. Chicken Guy may also establish commissaries and distribution facilities owned and operated by them or an affiliate that they will designate as an approved supplier.
Chicken Guy has the right to require franchisees to purchase proprietary food products only from them or a designated supplier. Franchisees must also purchase all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials and supplies used in the preparation of products, as well as advertising materials, furniture, fixtures, equipment, smallwares, menus, menu boards, forms, paper and plastic products, packaging or other materials that meet Chicken Guy's standards and specifications from approved suppliers. Chicken Guy estimates that the purchase of products that are subject to their standards and specifications represents approximately 100% of a franchisee's overall purchases in establishing and operating the Franchised Restaurant.
If a franchisee proposes to purchase any goods or materials from a supplier that Chicken Guy has not previously approved, the franchisee must submit a written request for such approval, or they must request that the supplier do so. Chicken Guy will provide their standards and specifications to the franchisee or to the proposed supplier, subject to the supplier's execution of a confidentiality agreement. Chicken Guy will notify the franchisee within 60 days after receipt of their request as to whether they are authorized to purchase such products from that supplier, and if such authorization is granted, the franchisee may contract with the approved supplier.