What is the condition for Chicken Guy to withhold consent for a relocation of the Franchised Restaurant?

According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees cannot relocate their restaurant without prior written consent from Chicken Guy. Chicken Guy may withhold this consent in its sole discretion.

Factors that Chicken Guy will consider when reviewing a relocation request include population density, the proximity of other Chicken Guy restaurants, and other relevant demographic factors. This means that if a franchisee wishes to move their restaurant to a new location, Chicken Guy will assess whether the new location is likely to be successful based on these criteria. If the area is already saturated with Chicken Guy restaurants or lacks sufficient population density, Chicken Guy may deny the relocation request.

Furthermore, if Chicken Guy approves a relocation, they have the right to charge the franchisee for all reasonable expenses incurred while considering the request. Chicken Guy may also require the franchisee to pay an agreed minimum royalty fee during the period the restaurant is not operating due to the relocation. This could create a financial burden for the franchisee, as they would need to cover both the relocation expenses and the minimum royalty fees while not generating revenue.

This policy is fairly standard in the franchise industry, as franchisors typically want to maintain control over the location of their restaurants to protect brand consistency and market coverage. However, the potential costs associated with relocation, including Chicken Guy's expenses and minimum royalty fees, should be carefully considered by prospective franchisees.