During the Development Term, what is the geographical limitation on the restriction preventing the Developer from operating a competing restaurant business against Chicken Guy?

According to Chicken Guy's 2025 Franchise Disclosure Document, during the Development Term, there is no geographical limitation on the restriction preventing the Developer from operating a competing restaurant business. This means that while the Development Agreement is in effect, the Developer is restricted from owning, operating, or having any interest in any restaurant business that features chicken as a primary menu item (at least 20% of sales) or whose method of operation or trade dress is similar to the Chicken Guy system, without any geographical boundary.

After the Development Term expires or is terminated, the geographical restriction applies within the Development Territory, within 2 miles of the border of the Development Territory, and within 2 miles of any then-existing Chicken Guy restaurant. However, this restriction does not apply to the Developer's existing restaurant or foodservice operations, if any, which are identified in the attached Data Sheet, nor does it apply to other restaurants operated by the Developer that are franchised by Chicken Guy or its affiliates.

This lack of geographical limitation during the Development Term is a significant restriction for potential developers. It means that even if the developer's territory is limited to a specific region, they cannot operate a competing chicken restaurant anywhere during the term of the development agreement. This could impact their ability to diversify their business interests or pursue other restaurant ventures, even outside their designated development area. Prospective developers should carefully consider this restriction and its potential impact on their business plans.