Does Chicken Guy currently receive payments in connection with the technology equipment and software that franchisees are required to purchase?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and install at your expense a technology system, including such data processing equipment, computer hardware, software, point of sale system, required dedicated telephone lines, broadband and wireless Internet connections, modems, printers and other computer related accessory or peripheral equipment as we may specify in the Manual or otherwise in writing. You must record all transactions at the Franchised Restaurant on a point of sale system that is fully compatible with our technology system and that includes an information interface capability to communicate electronically with our technology system to provide us with continuous transaction level point of sale data. You must utilize any proprietary software programs, system documentation manuals and other proprietary materials provided by us in connection with the operation of the Franchised Restaurant. You must input and maintain in your computer the software programs, data and information as we prescribe. You must purchase from us or our designated suppliers, at prices and upon terms that we determine, the applicable proprietary software programs, manuals and/or computer-related materials if and when we decide to use new or upgraded programs, manuals and/or materials throughout the System. We do not currently receive any payments in connection with these items.
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, franchisees are required to obtain a technology system that includes data processing equipment, computer hardware, software, a point of sale system, and other related equipment. Franchisees must also use any proprietary software programs provided by Chicken Guy. The FDD specifies that franchisees must purchase applicable proprietary software programs, manuals, and computer-related materials from Chicken Guy or its designated suppliers at prices and terms that Chicken Guy determines if and when Chicken Guy decides to use new or upgraded programs throughout the system. However, as of the FDD's publication, Chicken Guy does not currently receive any payments in connection with these technology-related purchases.
This means that while franchisees are obligated to invest in the specified technology and software, Chicken Guy is not presently profiting directly from these purchases. This could change in the future if Chicken Guy decides to implement new or upgraded systems and require franchisees to purchase them from Chicken Guy or designated suppliers. In that case, Chicken Guy would determine the prices and terms of those purchases.
Prospective franchisees should be aware that while Chicken Guy does not currently receive payments from technology purchases, the franchise agreement allows them to do so in the future. It would be prudent for potential franchisees to inquire about Chicken Guy's long-term technology plans and potential costs associated with future system upgrades to better understand the potential financial implications.