factual

What criminal convictions of a Chicken Guy developer or related parties can lead to termination?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (10) Developer, the Development Principal, any stockholder, member, partner, director or officer of Developer, any member of the Continuity Group or any 10% Owner is convicted of, or pleads no contest to, a felony charge, a crime involving moral turpitude or any other crime or offense that is reasonably likely, in the sole opinion of Chicken Guy, to adversely affect Chicken Guy, its affiliates or the System.

Source: Item 23 — RECEIPTS (FDD pages 50–286)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy can terminate the Development Agreement if the developer, the Development Principal, any stockholder, member, partner, director or officer of the developer, any member of the Continuity Group or any 10% Owner is convicted of, or pleads no contest to, a felony charge.

Additionally, termination can occur if any of the aforementioned parties are convicted of a crime involving moral turpitude. The agreement can also be terminated if any of those parties are convicted of any other crime or offense that is reasonably likely, in the sole opinion of Chicken Guy, to adversely affect Chicken Guy, its affiliates, or the Chicken Guy system.

This provision gives Chicken Guy broad discretion to terminate the agreement based on criminal convictions or pleas, even for offenses that may not seem directly related to the operation of the franchise. Prospective developers should be aware of this clause and ensure that all individuals associated with their development entity maintain a clean criminal record to avoid potential termination.

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.