What must a Developer demonstrate to Chicken Guy to get a site approved?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
uation of Developer's proposed sites.
- C. Real Estate Site Application. Developer shall submit to Chicken Guy a Real Estate Site Application (containing that information as Chicken Guy may reasonably require) for each proposed site which Developer reasonably believes to conform to site selection criteria that Chicken Guy establishes from time to time for demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by Chicken Guy or its affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises.
- D. Business Plan. Developer shall develop and submit to Chicken Guy, simultaneously with the submission of the Real Estate Site Application, a business plan ("Business Plan") for the length of the Development Term. The Business Plan shall outline the actions that Developer will take to ensure Developer's compliance with the Development Schedule and the development, operation and management of the Franchised Restaurants in accordance with Chicken Guy's standards. During the Development Term, Developer agrees to revise the Business Plan as required by Chicken Guy and further agrees to implement that Business Plan as approved by Chicken Guy.
E. Site Approval.
(1) Within 15 days after Chicken Guy's receipt of the Real Estate Site Application, the Business Plan and any additional information that Chicken Guy may reasonably require, Chicken Guy's
Real Estate Review Committee shall review that information, evaluate the proposed site and advise Developer in writing whether it has approved a particular site. If Chicken Guy does not respond within that time period, Chicken Guy shall be deemed to have rejected the site. Chicken Guy's approval or rejection of a site may be subject to reasonable conditions as determined in its sole discretion. (A site which Chicken Guy has approved shall be referred to as an "Authorized Site.")
- (2) Developer acknowledges that, in order to preserve and enhance the reputation and goodwill of all restaurants franchised by Chicken Guy and the goodwill of the Proprietary Marks, all Franchised Restaurants must be properly developed, operated and maintained. Accordingly, Developer agrees that Chicken Guy may refuse to approve a site for a proposed Franchised Restaurant unless Developer demonstrates sufficient financial capabilities, in Chicken Guy's sole judgment, applying standards consistent with criteria Chicken Guy uses to establish restaurants in other comparable market areas, to properly develop, operate and maintain the proposed Franchised Restaurant. To this end, Developer shall furnish Chicken Guy with such financial statements and other information regarding Developer (or its Affiliated Entity, as defined in Section 3.D.) and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant, as Chicken Guy reasonably may require.
- **(3) Chicken Guy's approval of one or more sites is not a representation or a promise by Chicken Guy that a Chicken Guy! Restaurant at the Authorized Site will achieve a certain sales volume or a certain level of profitability.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a Developer must demonstrate sufficient financial capabilities to properly develop, operate, and maintain the proposed Franchised Restaurant. This is determined by Chicken Guy in its sole judgment, applying standards consistent with criteria Chicken Guy uses to establish restaurants in other comparable market areas. To this end, the Developer must furnish Chicken Guy with financial statements and other information regarding the Developer (or its Affiliated Entity) and the development and operation of the proposed Franchised Restaurant, including investment and financing plans.
In addition to demonstrating financial capabilities, the Developer must submit a Real Estate Site Application to Chicken Guy, containing information that Chicken Guy may reasonably require. This includes demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, proximity to other businesses (including restaurants operated or franchised by Chicken Guy or its affiliates), the nature of other businesses in proximity to the site, other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site), and the size, appearance, other physical characteristics, and a site plan of the premises.
The Developer must also develop and submit a Business Plan simultaneously with the Real Estate Site Application. The Business Plan should outline the actions that the Developer will take to ensure compliance with the Development Schedule and the development, operation, and management of the Franchised Restaurants in accordance with Chicken Guy's standards. The Developer agrees to revise the Business Plan as required by Chicken Guy and further agrees to implement that Business Plan as approved by Chicken Guy.
Chicken Guy's Real Estate Review Committee will review the Real Estate Site Application, the Business Plan, and any additional information that Chicken Guy may reasonably require within 15 days of receipt. Chicken Guy will then advise the Developer in writing whether it has approved a particular site. Chicken Guy's approval or rejection of a site may be subject to reasonable conditions as determined in its sole discretion. If Chicken Guy does not respond within that time period, Chicken Guy shall be deemed to have rejected the site.