What is the 'Development Territory' as it relates to the Chicken Guy agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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. 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.
- C. Forms of Agreement. Developer acknowledges that Chicken Guy intends to enter into agreements with other developers and franchisees that may contain provisions, conditions and obligations that differ from those contained in this Agreement. The existence of different forms of agreement and the fact that Chicken Guy and other developers and franchisees may have different rights and obligations do not affect the duties of the parties to this Agreement to comply with the terms of this Agreement.
**2.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Development Territory is a specific geographic area outlined in the attached Data Sheet, within which the Developer has the right to develop franchised restaurants during the Development Term. The Development Term starts when the agreement is signed by Chicken Guy and ends when the Developer signs the lease or purchases the site for the last restaurant they are required to develop, as per the Development Schedule in the Data Sheet. Each restaurant must be located within the Development Territory at a site approved by Chicken Guy.
It is important to note that the Development Agreement does not grant the Developer the right to operate Chicken Guy restaurants or use the Chicken Guy system directly. It also does not allow the Developer to license others. The agreement solely provides the opportunity to enter into separate Franchise Agreements for operating restaurants within the Development Territory. Each restaurant must be established and operated under a separate Franchise Agreement.
Chicken Guy retains the right to enter into agreements with other developers and franchisees that may differ from the Developer's agreement. The Developer is obligated to comply with the terms of their specific agreement, regardless of any differences in other agreements. Chicken Guy also retains the right to operate or license others to operate Chicken Guy restaurants outside the Development Territory during the Development Term, and anywhere after the agreement terminates. They can also operate or license other types of restaurants at any location during or after the Development Term. The restrictions in the agreement do not apply to Chicken Guy restaurants already under construction or in operation within the Development Territory as of the agreement date.
The Developer is obligated to develop and continuously operate the number of restaurants specified in the Development Schedule within the Development Territory during the Development Term. Obtaining Chicken Guy's written approval for each site by the date listed in the Development Schedule is also required. Failure to meet these obligations constitutes a material breach of the agreement, potentially leading to immediate termination by Chicken Guy. Time is of the essence in adhering to the Development Schedule.