Must the Development Principal for a Chicken Guy franchise be acceptable to both the franchisee and the franchisor?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
G. Development Principal.
(1) If Developer is owned by more than one individual, Developer shall designate and retain an individual to serve as the Development Principal. The Development Principal as of the date of this Agreement is identified in the attached Data Sheet. Unless waived in writing by Chicken Guy, the Development Principal shall meet all of the following qualifications:
(a) The Development Principal, at all times, shall be a member of the Continuity Group and, at a minimum, have full control over the day-to-day development of Developer's Franchised Restaurants.
(b) The Development Principal shall devote substantial and adequate time and reasonable efforts to supervising the development of Developer's Franchised Restaurants and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
(c) The Development Principal shall have at least five years' of full profit and loss responsibility and accountability, with a history of operating at least as many restaurants as Developer has agreed to develop under this Agreement.
(d) If requested by Chicken Guy, the Development Principal shall successfully complete Chicken Guy's development training. In addition, the Development Principal shall successfully complete Chicken Guy's initial manager training program (either the full initial manager training program or a modified version of the initial manager training program to meet the specific needs of the candidate, as deemed appropriate by Chicken Guy in its sole discretion).
(e) Chicken Guy shall have approved the Development Principal and not have later withdrawn that approval.
(2) If the Development Principal no longer qualifies as such, Developer shall designate another qualified person to act as Development Principal within 30 days after the date the prior Development Principal ceases to be qualified. Developer's designee to become the Development Principal must successfully complete the initial manager training program. Following Chicken Guy's approval of a new Development Principal, that person shall execute the attached form of Guarantee unless waived by Chicken Guy in its sole discretion.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, if a developer is owned by more than one individual, they must designate a Development Principal. Chicken Guy must approve this Development Principal, and that approval cannot be withdrawn later. If the Development Principal no longer qualifies, the developer has 30 days to designate a new qualified person, who must also complete the initial manager training program and be approved by Chicken Guy.
The Development Principal must be part of the Continuity Group and have full control over the day-to-day development of the franchised restaurants. They need to dedicate substantial time and effort to supervising the development and cannot be involved in other businesses that demand significant management responsibility.
Furthermore, the Development Principal should have at least five years of full profit and loss responsibility and accountability, with a history of operating at least as many restaurants as the developer plans to develop under the Development Agreement. Chicken Guy may also require the Development Principal to complete their development training and initial manager training program. This ensures that the Development Principal has the necessary experience, focus, and training to effectively manage the development of multiple Chicken Guy restaurants, aligning with Chicken Guy's standards and operational requirements.