What must a Chicken Guy Developer do in the event of any change in the Continuity Group or their ownership interests?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if there are any changes to the Continuity Group or their ownership interests, the Developer must execute addenda to the attached Data Sheet to reflect the change. The Continuity Group is defined as those persons whom Chicken Guy and the Developer have designated as the Developer's "Continuity Group" on the attached Data Sheet.
The FDD specifies that the Continuity Group must maintain a minimum ownership stake in the Developer entity. If the Developer is a corporation, the Continuity Group must 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. If the Developer is a partnership, the Continuity Group must have at least a 51% interest in the operating profits and losses and at least a 51% ownership interest in the Developer.
This requirement ensures that the individuals initially approved by Chicken Guy maintain control and a significant financial stake in the development entity. This protects Chicken Guy's interests by ensuring consistent management and commitment from the individuals they have vetted and approved. The addendum to the Data Sheet serves to keep Chicken Guy informed of any changes that could potentially impact the ownership and control structure of the Developer.