What is the deadline for a Chicken Guy franchisee to notify Chicken Guy of their intent to exercise the renewal option?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) At the expiration of the Initial Term, Franchisee shall have an option to remain a franchisee at the Franchised Location for two additional consecutive Renewal Terms of 5 years each. The conditions for renewal at the expiration of the Initial Term are set forth in this Section 2.B. The conditions for renewal at the expiration of the first Renewal Term shall be set forth in the franchise agreement in effect at that time. Franchisee must give Chicken Guy written notice of whether or not it intends to exercise its option for the first Renewal Term not less than 9 months, nor more than 12 months, before the expiration of the Initial Term. Failure to timely provide Chicken Guy the required notice constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term. | Expiration Date of Initial | | Term: | Midnight on the day preceding the 10th anniversary of the date the |
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee must provide Chicken Guy with written notice of their intent to exercise the renewal option no less than 9 months and no more than 12 months before the expiration of the initial term. Failure to provide timely notice constitutes a waiver of the franchisee's option to remain a franchisee beyond the initial term.
Specifically, the initial term's expiration is defined as midnight on the day preceding the 10th anniversary of when the franchised restaurant first opened for business. This means a Chicken Guy franchisee needs to mark their calendar and proactively manage the renewal notification within that 3-month window (between 9 and 12 months prior to the 10-year anniversary) to avoid losing their renewal rights.
In addition to providing timely notice, the Chicken Guy franchisee must also meet other conditions to be eligible for renewal, including not being in default of the franchise agreement, renovating the restaurant to meet current image standards, ensuring the right to remain in possession of the location, executing a general release of claims against Chicken Guy, paying a renewal fee equal to 50% of the then-current initial franchise fee for a nontraditional location, and executing a new franchise agreement.