What is Chicken Guy's definition of 'proprietary products'?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the reputation and goodwill of Chicken Guy! Restaurants are based upon, and can only be maintained by, the sale of distinctive, high quality food products and beverages, and the presentation, packaging and service of such products and beverages in an efficient and appealing manner. Chicken Guy may develop certain proprietary food products that will be
prepared by or for Chicken Guy according to Chicken Guy's proprietary special recipes and formulas (collectively "proprietary products"). Chicken Guy also has developed standards and specifications for other food products, ingredients, seasonings, mixes, beverages, materials and supplies incorporated or used in the preparation, cooking, serving, packaging and delivery of prepared food products authorized for sale at Chicken Guy! Restaurants. Franchisee agrees that it will: (a) purchase those proprietary products only from Chicken Guy or a third party designated and licensed by Chicken Guy to prepare and sell such products (collectively "designated suppliers"); (b) use the proprietary products only in accordance with the Manual and for items sold at the Franchised Restaurant; and (c) purchase from manufacturers, distributors, vendors and suppliers approved by Chicken Guy (collectively "approved suppliers") all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials and supplies used in the preparation of products (collectively "goods"), as well as advertising materials furniture, fixtures, equipment, smallwares, menus, menu boards, forms, paper and plastic products, packaging or other materials (collectively "materials") that meet the standards and specifications promulgated by Chicken Guy from time to time. Chicken Guy has the right to require that Franchisee use only certain brands and to prohibit Franchisee from using other brands. Chicken Guy may from time to time modify the list of approved brands (including certain brands of soft drinks and bottled beverages), and Franchisee shall not, after receipt of such modification in writing, reorder any brand that is no longer an approved brand. Chicken Guy may from time to time modify the list of designated suppliers and/or approved suppliers, and Franchisee shall not, after receipt of such modification in writing, order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, proprietary products are defined as specific food products developed by or for Chicken Guy, prepared according to their special recipes and formulas. These products are integral to maintaining the brand's reputation for high-quality food.
As a franchisee, you are required to purchase these proprietary products exclusively from Chicken Guy or from designated suppliers that Chicken Guy has licensed to prepare and sell these items. Furthermore, you must use these products strictly in accordance with the operations manual and only for items sold at your franchised restaurant. This ensures uniformity and quality control across all Chicken Guy locations.
This requirement means that franchisees cannot source these specific, branded food items from other suppliers, even if they might find similar products at a lower cost. While this limits a franchisee's purchasing flexibility, it is intended to protect the consistency and quality that customers associate with the Chicken Guy brand. Franchisees must stay updated on any modifications to the list of designated suppliers, as they will be notified in writing of any changes.