With whom does Chicken Guy have a contract for exclusive fountain beverage and lemonade supply?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
he form of rebates, commissions, or other payments. We have entered into a contract with the Coca-Cola Company ("Coke") under the terms of which Coke is the exclusive fountain beverage and lemonade supplier for Chicken Guy! Restaurants. Coke has agreed to accrue and semi-annually pay $3.50 to us for each gallon of fountain syrup purchased for the use of mutually agreed upon marketing activities. Coke has also agreed to provide a $0.60 to us for each gallon of fountain syrup purchased for various other funds – including the ma
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has a contract with the Coca-Cola Company ("Coke") to be the exclusive fountain beverage and lemonade supplier for all Chicken Guy restaurants.
Under the terms of the agreement, Coke provides certain payments to Chicken Guy based on franchisee purchases. Specifically, Coke accrues and semi-annually pays $3.50 to Chicken Guy for each gallon of fountain syrup purchased for mutually agreed upon marketing activities. Additionally, Coke provides $0.60 to Chicken Guy for each gallon of fountain syrup purchased, which is allocated to various funds including the marketing support fund, meeting fund, and growth fund.
This arrangement means that franchisees are required to purchase fountain beverages and lemonade exclusively from Coca-Cola. While this ensures consistency across the Chicken Guy system, it also limits a franchisee's ability to negotiate pricing or source these products from alternative suppliers. The payments Chicken Guy receives from Coke based on franchisee purchases could potentially offset costs or contribute to marketing and growth initiatives, indirectly benefiting franchisees.