factual

What covenants or obligations are prohibited in the lease or sublease for a Chicken Guy Authorized Location?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

The lease or sublease shall not contain any covenants or other obligations that would prevent Developer from performing its obligations under the Franchise Agreement.

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 proposes to lease or sublease an authorized location, the lease or sublease must not contain any covenants or other obligations that would prevent the developer from performing their obligations under the Franchise Agreement. This is a critical requirement to ensure that the franchisee can fully comply with the terms and conditions set forth by Chicken Guy.

Chicken Guy also mandates specific provisions to be included in any lease, sublease, letter of intent, or lease memorandum for the authorized location. These provisions ensure that the landlord consents to the franchisee's use of proprietary signs, distinctive designs, and trademarks, and allows the franchisee to remove these items upon lease expiration or termination, provided they repair any damage caused by the removal. The landlord must also agree to provide Chicken Guy with copies of all lease-related amendments, assignments, and default notices.

Furthermore, Chicken Guy retains the right to enter the leased premises to make necessary modifications or alterations to protect the system and proprietary marks, and to cure any lease defaults, charging the developer for these costs. The landlord must also acknowledge that the developer is solely responsible for all lease obligations, debts, and payments. These stipulations collectively aim to safeguard Chicken Guy's brand standards and operational consistency, while also ensuring the franchisee's ability to meet their contractual obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.