What constitutes a cessation of continuous operation that could lead to termination of a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Franchisee ceases to continuously operate the Franchised Restaurant for a period in excess of 5 consecutive days, unless the closing is due to an act of God, fire or other natural disaster or is approved in writing in advance by Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee's failure to continuously operate their restaurant can lead to termination of the franchise agreement. Specifically, if a Chicken Guy restaurant ceases continuous operation for more than 5 consecutive days, Chicken Guy may terminate the agreement without providing an opportunity to cure the breach.
However, there are exceptions to this rule. The cessation of operations must be continuous for more than 5 days to trigger termination. Closures due to events outside of the franchisee's control, such as acts of God, fires, or other natural disasters, are exempt. Additionally, if the franchisee obtains written approval from Chicken Guy in advance for a temporary closure, this will not be considered a breach of the agreement.
This clause is important for prospective franchisees to understand, as it highlights the importance of maintaining consistent operations. Unplanned or unapproved closures, even for a relatively short period, could have serious consequences, including the loss of the franchise. Franchisees should ensure they have contingency plans in place to address potential disruptions and should always seek written approval from Chicken Guy before any planned temporary closures.