What is the 'Development Term' in the Chicken Guy agreement defined as?

According to Chicken Guy's 2025 Franchise Disclosure Document, the Development Term refers to the period during which a developer has the right to develop franchised restaurants within a specific geographic area. This term begins when the Development Agreement is signed by Chicken Guy and concludes when the developer signs the lease or purchases the site for the final restaurant they are obligated to develop, according to the Development Schedule outlined in the attached Data Sheet. It's important to note that the Development Agreement does not have a renewal term.

This agreement grants the developer the right to develop Chicken Guy restaurants within the designated territory but does not constitute a franchise agreement itself. The developer does not gain the right to operate the restaurants or use the Chicken Guy system directly through this agreement. Instead, it provides the opportunity to enter into separate Franchise Agreements for each restaurant developed within the territory. Each restaurant must be established and operated in strict accordance with its own Franchise Agreement.

Chicken Guy retains the flexibility to enter into agreements with other developers and franchisees that may differ from the terms and conditions in the developer's agreement. The existence of different agreements does not affect the developer's obligation to comply with the terms of their specific Development Agreement. The developer should pay close attention to the Development Schedule, as failure to meet the deadlines for site approval or restaurant openings can result in a material breach of the agreement, potentially leading to immediate termination by Chicken Guy.