In the context of the Chicken Guy! Restaurant Development Agreement, who is referred to as the 'Developer'?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | Addendum | to | the | Chicken | Guy! | Restaurant | Development | Agreement | dated |
|---|---|---|---|---|---|---|---|---|---|
| ("Development Agreement") between Chicken Guy (Franchisor), LLC ("Chicken | |||||||||
| Guy") and ("Developer") is entered into | |||||||||
| simultaneously with the execution of the Development Agreement. |
- 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Developer was made in the State of South Dakota; (B) Developer is a resident of the State of South Dakota; and/or (C) part or all of the Development Territory is located in the State of South Dakota.
- 2. The following language is added to the end of Section 4 of the Development Agreement:
Pursuant to an order by the South Dakota Securities Regulation Office, Chicken Guy has posted a surety bond in the amount of $50,000.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the 'Developer' refers to the party entering into the Restaurant Development Agreement with Chicken Guy (Franchisor), LLC. This agreement outlines the terms and conditions under which the developer is authorized to establish multiple Chicken Guy restaurants within a specific territory. The document explicitly states that the Development Agreement is made between Chicken Guy (Franchisor), LLC and the 'Developer'.
This definition is crucial because the Development Agreement sets forth the obligations, responsibilities, and rights of both Chicken Guy and the developer. Understanding who the 'Developer' is, as defined in the agreement, is essential for clarifying the legal relationship and the specific duties each party owes to the other. This includes aspects such as development schedules, site selection, and adherence to Chicken Guy's operational standards.
Furthermore, the FDD includes an addendum specifically for developers in South Dakota. This addendum highlights that the offer or sale of a franchise to the Developer was made in South Dakota, the Developer is a resident of South Dakota, and/or part or all of the Development Territory is located in South Dakota. This addendum also requires Chicken Guy to post a surety bond in the amount of $50,000 in South Dakota.
In practical terms, the 'Developer' is the individual or entity that is granted the right to develop and operate multiple Chicken Guy restaurants within a defined area, subject to the terms and conditions outlined in the Development Agreement and any state-specific addenda.