What is Chicken Guy's criteria regarding the sales price of a transfer?

According to Chicken Guy's 2025 Franchise Disclosure Document, when a franchisee (referred to as "Developer" in the document) seeks to transfer their interest, Chicken Guy assesses the sales price to ensure it does not jeopardize the transferee's ability to successfully operate the franchise. Specifically, Chicken Guy will evaluate if the sales price is so high that the new franchisee would struggle to develop, maintain, operate, and promote the Franchised Restaurants, or meet their financial obligations to Chicken Guy, third-party suppliers, and creditors. This evaluation is part of Chicken Guy's broader discretion in approving or disapproving the transfer.

Chicken Guy's evaluation of the sales price is one of several factors they consider during a transfer. Other factors include the proposed transferee's experience in high-quality restaurant operations, their managerial and operational standards, character, business reputation, credit rating, compatibility with Chicken Guy's management culture, and adequate financial resources. Additionally, all of the franchisee's outstanding financial obligations to Chicken Guy and its affiliates must be satisfied or adequately provided for, potentially requiring a reasonable sum of money to be placed in escrow to ensure these obligations are met.

Chicken Guy also maintains a right of first refusal. If the proposed transfer involves consideration other than cash or includes intangible benefits, Chicken Guy can elect to purchase the interest for the reasonable cash equivalent. If the parties cannot agree on the cash equivalent within 30 days, the value will be determined by two professionally certified appraisers, one chosen by the franchisee and one by Chicken Guy. If the appraisers' valuations differ by more than 10%, a third appraiser will be selected, and the average of the appraisals will be conclusive. Chicken Guy then has 30 days to exercise its right of first refusal based on the appraised value. The cost of the appraisers is shared equally between the parties. If Chicken Guy declines to exercise its right of first refusal, the franchisee cannot transfer the interest at a lower price or on more favorable terms than those offered to Chicken Guy.