What is the consequence if a developer transfers interest without Chicken Guy's consent?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Except as otherwise provided in this Agreement, any purported Transfer, by operation of law or otherwise, not having the prior written consent of Chicken Guy shall be null and void and shall constitute a material breach of this Agreement, for which Chicken Guy may terminate this Agreement without providing Developer an opportunity to cure the breach.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if a developer attempts to transfer any interest in the Development Agreement without obtaining prior written consent from Chicken Guy, such a transfer will be considered null and void. Furthermore, this unauthorized transfer constitutes a material breach of the Development Agreement.
As a consequence of this breach, Chicken Guy has the right to terminate the Development Agreement immediately. Importantly, Chicken Guy is not obligated to provide the developer with an opportunity to rectify or 'cure' the breach before terminating the agreement.
This provision underscores the importance Chicken Guy places on controlling who its developers are and ensuring they meet the company's standards for business skill, financial capacity, and operational ability. Prospective developers should be aware that any transfer of interest, no matter how small, requires explicit approval from Chicken Guy to avoid potential termination of their agreement.