Is the Developer considered an employee of Chicken Guy under the agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
15. RELATIONSHIP OF THE PARTIES
- A. This Agreement does not create a fiduciary or other special relationship between the parties. No agency, employment, or partnership is created or implied by the terms of this Agreement, and each party is not and shall not hold itself out as an agent, legal representative, partner, subsidiary, joint venturer, joint employer, or employee of the other for any purpose whatsoever. Neither this Agreement nor Chicken Guy's course of conduct is intended, nor may anything in this Agreement (nor Chicken Guy's course of conduct) be construed to state or imply that Chicken Guy is the employer of Developer's employees and/or independent contractors, nor vice versa. Developer shall have no right or power to, and shall not, bind or obligate Chicken Guy or its affiliates in any way or manner, nor represent that Developer has any right to do so.
- B. Developer is an independent contractor and is solely responsible for all aspects of the development and operation of the Franchised Restaurants, subject only to the conditions and covenants established by this Agreement and the Franchise Agreements. Without limiting the generality of the foregoing, Developer acknowledges that Chicken Guy has no responsibility to ensure that the Franchised Restaurants are developed in compliance with all applicable laws, ordinances and regulations and that Chicken Guy shall have no liability in the event the development or operation of the Franchised Restaurants violates any law ordinance or regulation.
- C. The sole relationship between Developer and Chicken Guy is a commercial, arms' length business relationship and, except as provided in Section 16, there are no third party beneficiaries to this Agreement. Developer's business is, and shall be kept, totally separate and apart from any that may be
operated by Chicken Guy. In all public records, in relationships with other persons, and on letterheads and business forms, Developer shall indicate its independent ownership of the Franchised Restaurants and that Developer is solely a franchisee of Chicken Guy. Developer shall not issue any press releases without the prior written approval of Chicken Guy.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Developer is explicitly not considered an employee of Chicken Guy. The agreement specifies that no agency, employment, or partnership is created or implied by the terms of the agreement. Each party involved is not, and shall not represent themselves as, an agent, legal representative, partner, subsidiary, joint venturer, joint employer, or employee of the other for any purpose.
Chicken Guy emphasizes that neither the agreement nor their course of conduct is intended to imply that Chicken Guy is the employer of the Developer's employees or independent contractors, or vice versa. The Developer has no right or power to bind or obligate Chicken Guy or its affiliates in any way, nor can they represent that they have any right to do so.
The agreement clearly states that the Developer functions as an independent contractor, bearing sole responsibility for all aspects of the development and operation of the Franchised Restaurants, subject to the conditions and covenants established by the Development Agreement and the Franchise Agreements. Chicken Guy has no responsibility to ensure that the Franchised Restaurants are developed in compliance with all applicable laws, ordinances, and regulations, and they bear no liability if the development or operation violates any law, ordinance, or regulation.
The relationship between the Developer and Chicken Guy is defined as a commercial, arms' length business relationship, ensuring that the Developer's business remains totally separate from any business operated by Chicken Guy. In all public records, interactions with other persons, and on letterheads and business forms, the Developer must indicate their independent ownership of the Franchised Restaurants and their status as solely a franchisee of Chicken Guy. The Developer cannot issue any press releases without Chicken Guy's prior written approval.