When does the Development Term 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 for a development agreement begins when the agreement is signed by Chicken Guy. The Development Term concludes when the developer signs the lease or purchases the site for the final franchised restaurant they are required to develop, according to the Development Schedule outlined in the attached Data Sheet. There is no option to renew the development agreement.
This means that a developer's rights to develop Chicken Guy restaurants in a specific territory are limited to the period between the agreement's signing and the completion of site acquisition for the last required restaurant. This timeline is crucial for developers to understand, as failing to meet the development schedule can result in termination of the agreement.
Prospective developers should carefully review the Development Schedule in the Data Sheet to understand the specific obligations and deadlines for opening restaurants in their territory. They should also consider the time required for site selection, approval, and lease negotiation or purchase, as these factors directly impact the Development Term's end date. Because the development agreement is not a franchise agreement, it only provides the opportunity to enter into franchise agreements and does not grant the right to operate a Chicken Guy restaurant or use the Chicken Guy system.