What is the 'Development Term' as it relates to the Chicken Guy agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
and furnishings; special recipes and menu items; procedures and techniques for food and beverage preparation and service; automated management information and control systems for inventory controls, cash controls and sales analysis; technical assistance and training through course instruction and manuals; and advertising and promotional programs. The System and its components may be changed, improved and further developed by Chicken Guy from time to time.
Pursuant to a License Agreement with Chicken Concept, LLC ("Licensor"), Chicken Guy has the right to use, and permit its franchisees to use, the name and mark "Chicken Guy!" in addition to certain related trademarks, service marks and other commercial symbols.
Chicken Guy identifies the System by means of the "CHICKEN GUY!" name and mark and certain other names, marks, logos, insignias, slogans, emblems, symbols and designs (collectively "Proprietary Marks"), which Chicken Guy has designated or may in the future designate, for use with the System. The Proprietary Marks used to identify the System, including the principal Proprietary Marks, may be modified by Chicken Guy and/or its affiliates from time to time.
Chicken Guy continues to develop, use and control the use of these Proprietary Marks in order to identify to the public the source of services and products marketed under the Proprietary Marks and the System and to represent the System's high standards of quality, appearance and service.
Developer desires to be granted the opportunity, subject to the terms and conditions of this Agreement, to develop franchised Chicken Guy! Restaurants (collectively "Franchised Restaurant(s)") within a certain geographic territory.
Developer understands and acknowledges the importance of Chicken Guy's high and uniform standards of quality, operations and service and the necessity of developing Franchised Restaurants in strict conformity with this Agreement and the Chicken Guy! Operations Manual ("Manual").
Chicken Guy is willing to grant Developer the opportunity to develop Franchised Restaurants in a certain geographic territory, subject to the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of Chicken Guy's grant to Developer of the right to develop Franchised Restaurants in the Development Territory during the term of this Agreement ("Development Term"), as well as the mutual covenants, agreements and obligations set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. GRANT OF DEVELOPMENT RIGHTS
- 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.
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 refers to the period during which the developer has the right to develop franchised restaurants within a specific geographic area. The Development 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 last franchised restaurant they are required to develop, as outlined in the Development Schedule. There is no option to renew the Development Agreement.
This agreement grants the developer the right to develop Chicken Guy restaurants within the designated territory but does not constitute a license or franchise agreement. It does not grant the developer the right to operate Chicken Guy restaurants or to sub-franchise the concept to others. The developer only has the opportunity to enter into separate Franchise Agreements for operating restaurants within the Development Territory, subject to Chicken Guy's approval. Each restaurant must be established and operated in strict accordance with a separate Franchise Agreement.
Chicken Guy retains the flexibility to enter into agreements with other developers and franchisees that may differ from 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's access to Chicken Guy's trade secrets, specialized training, and confidential information during the Development Term is acknowledged as valuable, and restrictions are placed on the developer's involvement with competitive businesses during the Development Term and for one year after its expiration or termination.