What must the Developer, individuals, and guarantors execute to transfer a Chicken Guy franchise?

According to Chicken Guy's 2025 Franchise Disclosure Document, to transfer a franchise, the Developer, all individuals who executed the agreement, and all guarantors of the Developer's obligations must execute a general release and a covenant not to sue. This release and covenant must be in a form satisfactory to Chicken Guy, covering any and all claims against Chicken Guy and its affiliates, including their officers, directors, shareholders, agents, and employees. The claims include those arising under federal, state, and local laws, rules, and ordinances, as well as claims related to the agreement itself and other agreements between the Developer and Chicken Guy.

This requirement ensures that Chicken Guy is protected from potential legal action by the transferring party related to the franchise agreement or the operation of the franchise. The release covers a broad range of potential claims, providing Chicken Guy with significant legal protection. This is a standard practice in franchising to avoid future disputes with former franchisees.

Additionally, the transferor may be required to pay Chicken Guy a nonrefundable transfer fee of $10,000. The Developer and the proposed transferee must execute either an assignment agreement or Chicken Guy's current standard form of development agreement. The Developer may also be required to execute a written guarantee, remaining liable for obligations to Chicken Guy incurred before the transfer for one year following the transfer. These conditions ensure that Chicken Guy receives compensation for the transfer and that the new franchisee is bound by the current franchise agreement terms.