How does Chicken Guy define the 'Continuity Group' for a Developer?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- **E.
Continuity Group.** If Developer is a corporation, a limited liability company or a partnership, the attached Data Sheet lists those persons whom Chicken Guy and Developer have designated as Developer's "Continuity Group." In the event of any change in the Continuity Group or in the ownership interests of any member of the Continuity Group, Developer shall execute addenda to the attached Data Sheet to reflect the change.
If Developer is a corporation, the Continuity Group shall at all times own at least 51% of the voting securities of Developer; if Developer is a limited liability company, the Continuity
Group shall at all times own at least 51% of the membership interests in Developer; and if Developer is a partnership, the Continuity Group shall at all times have at least a 51% interest in the operating profits and losses and at least a 51% ownership interest in Developer.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the "Continuity Group" is defined as those persons whom Chicken Guy and the Developer have designated in the attached Data Sheet. If there are any changes to the Continuity Group or their ownership interests, the Developer must update the Data Sheet to reflect these changes.
For a corporation, the Continuity Group must collectively own at least 51% of the voting securities. If the Developer is a limited liability company, the Continuity Group must own at least 51% of the membership interests. For a partnership, the Continuity Group needs to hold at least a 51% interest in the operating profits and losses, as well as a 51% ownership interest in the Developer entity.
This requirement ensures that a consistent group of individuals maintains control and financial stake in the Chicken Guy development, providing stability and accountability. Prospective franchisees should carefully consider who is included in the Continuity Group, as changes can trigger the need for addenda and must adhere to the minimum ownership percentages to remain in compliance with the franchise agreement.