When does the Development Term begin and end for a Chicken Guy development agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Grant; Territory. Chicken Guy hereby grants to Developer, subject to the terms, conditions, provisions and limitations of this Agreement, the right to develop Franchised Restaurants within the geographic area described in the attached Data Sheet ("Development Territory") during the Development Term. The Development Term begins on the date this Agreement is signed by Chicken Guy and terminates on the date that the Developer signs the lease or purchases the site for the last Franchised Restaurant that Developer is required to develop pursuant to the Development Schedule in the attached Data Sheet. There is no renewal term for this Agreement. Each Franchised Restaurant shall be located in the Development Territory at a specific location approved by Chicken Guy.
- B. Development Rights Only. This Agreement is not a license or a franchise agreement. It does not give Developer the right to operate Chicken Guy! Restaurants or use the System. In addition, this Agreement does not give Developer any right to license others to operate Chicken Guy! Restaurants or use the System. This Agreement only gives Developer the opportunity to enter into Franchise Agreements for the operation of Franchised Restaurants at locations in the Development Territory approved by Chicken Guy. Each Franchised Restaurant developed pursuant to this Agreement shall be established and operated only in strict accordance with a separate Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Development Term outlines the period during which a developer has the right to establish franchised restaurants within a specific geographic area. The Development Term for a Chicken Guy development agreement begins when the agreement is signed by Chicken Guy. It concludes when the developer signs the lease or purchases the site for the final franchised restaurant they are obligated to develop, as per the Development Schedule outlined in the attached Data Sheet.
It is important to note that this agreement solely grants development rights and does not constitute a franchise agreement or license to operate a Chicken Guy restaurant. The developer must enter into separate Franchise Agreements for each restaurant they develop. The FDD also states that Chicken Guy may have different agreements with other developers and franchisees, which may contain different provisions and obligations.
Prospective developers should pay close attention to the Development Schedule and ensure they can meet the required timelines for site approval and restaurant openings. Failure to comply with the Development Schedule can result in termination of the agreement. The developer should also be aware of the financial obligations, including the Development Fee, which is paid upon signing the agreement and credited against future Initial Franchise Fees.