What are the consequences if a Chicken Guy developer knowingly falsifies reports?

According to Chicken Guy's 2025 Franchise Disclosure Document, a developer faces specific consequences for knowingly falsifying reports required by Chicken Guy or making any material misrepresentation in dealings with Chicken Guy, or failing to disclose any material facts. This is explicitly stated as an event of default under the Development Agreement.

Specifically, Item 23 outlines various conditions under which a developer would be considered in default. One of these conditions is if the developer knowingly falsifies any report required to be furnished to Chicken Guy. This provision underscores the importance of transparency and honesty in the relationship between Chicken Guy and its developers. The integrity of the data and information provided by the developer is critical for Chicken Guy to make informed decisions and maintain the consistency and quality of its brand.

While the FDD excerpt specifies that falsifying reports constitutes a default, it does not detail the exact repercussions of such a default. Typically, default scenarios can lead to a range of actions by the franchisor, including termination of the development agreement, loss of development fees, and legal action to recover damages. A prospective Chicken Guy developer should seek clarification from the franchisor regarding the specific actions Chicken Guy might take if a developer is found to have knowingly falsified reports.