Can Chicken Guy establish commissaries and distribution facilities owned and operated by Chicken Guy or an affiliate that Chicken Guy shall designate as an approved supplier?

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the right to establish commissaries and distribution facilities. These facilities can be owned and operated either by Chicken Guy itself or by an affiliate. Chicken Guy also has the authority to designate these entities as approved suppliers for the Chicken Guy franchise system.

This means that Chicken Guy franchisees may be required to purchase some or all of their supplies from these company-owned or affiliated distribution centers. This arrangement allows Chicken Guy to maintain quality control and potentially negotiate better pricing through bulk purchasing.

However, it also means that franchisees may have limited or no choice in suppliers for certain products, and they may not be able to find lower prices from alternative sources. It is important for prospective franchisees to understand the pricing structure and product availability from these designated suppliers to assess the potential impact on their restaurant's profitability.