Who determines how monies in the Chicken Guy Regional Co-op are spent?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Monies in the Regional Co-op may be spent for the purposes determined by majority vote of the Regional Co-op on the basis of one vote for each Chicken Guy! Restaurant in the Regional Co-op. Unless otherwise consented to in writing by Chicken Guy, the Regional Co-op shall only conduct advertising that conforms with those advertising and sales promotions specified by Chicken Guy from time to time (including the media in which conducted). All advertising shall be submitted to Chicken Guy prior to first use as provided in Section 9.F., and all advertising shall adhere to the standards set forth in Section 9.F. Each franchisee who is a member of the Regional Co-op shall be entitled to vote on Regional Co-op matters; however, a franchisee shall not be entitled to vote if it is in default under its franchise agreement or any other agreement with Chicken Guy or its affiliates. Chicken Guy always shall be a member of the Regional Co-op and be entitled to attend and fully participate in Regional Co-op meetings, but Chicken Guy shall not have a vote unless it or its affiliates operates Chicken Guy! Restaurants in the area covered by the Regional Co-op. Chicken Guy shall be given at least 3 days' prior written notice of Regional Co-op meetings. If the members of the Regional Co-op are unable or fail to determine the manner in which Regional Co-op monies should be spent, Chicken Guy may assume this decision making authority following 10 days' advance written notice to the members of the Regional Co-op.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the spending of monies in the Regional Co-op is determined by a majority vote of the Regional Co-op members. Each Chicken Guy restaurant within the co-op gets one vote. However, a franchisee is not eligible to vote if they are in default under their franchise agreement or any other agreement with Chicken Guy or its affiliates.
Chicken Guy is always a member of the Regional Co-op and can attend and participate in meetings, but it only gets a vote if it or its affiliates operate Chicken Guy restaurants in the area covered by the co-op. Chicken Guy must receive at least three days' written notice before any Regional Co-op meetings.
However, if the members of the Regional Co-op cannot agree on how to spend the monies, Chicken Guy can take over the decision-making authority. Chicken Guy must provide the members with 10 days' advance written notice before assuming this authority. This ensures that advertising and promotional activities can continue even if the co-op members are deadlocked.