What is a Chicken Guy Developer required to submit to Chicken Guy when proposing a Transfer?

According to Chicken Guy's 2025 Franchise Disclosure Document, a Developer who intends to transfer their rights must first advise Chicken Guy in writing. The Developer must then submit a franchise application for the proposed transferee, along with copies of all contracts, agreements, proposals, and any other information Chicken Guy requests related to the transfer. This comprehensive submission allows Chicken Guy to thoroughly evaluate the proposed transfer and the transferee's qualifications.

Chicken Guy will assess numerous factors to determine whether to approve the transfer. These factors include the proposed transferee's experience in high-quality restaurant operations, their managerial and operational standards, character, business reputation, credit rating, compatibility with Chicken Guy's management culture, and adequate financial resources to meet the developer's obligations. Chicken Guy also considers whether the sales price jeopardizes the transferee's ability to operate the franchised restaurants and meet financial obligations.

In addition to assessing the transferee, Chicken Guy also requires the developer to ensure that all accrued monetary obligations to Chicken Guy and its affiliates are satisfied, along with all other outstanding obligations related to the franchised restaurants. Chicken Guy may require a reasonable sum of money to be placed in escrow to ensure these obligations are met. The Developer must also provide Chicken Guy written notice of their intent to transfer at least 30 days prior to the effective date, along with documents demonstrating that the transfer meets all requirements.

Furthermore, the developer must not be in default of the Development Agreement or any other agreements with Chicken Guy or its affiliates at the time of the transfer notice. All individuals who executed the Development Agreement and all guarantors of the developer's obligations must execute a general release and a covenant not to sue Chicken Guy, its affiliates, and their respective officers, directors, shareholders, agents, and employees. Unless waived by Chicken Guy, the transferee and their designated employees must also complete the development training programs.