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What evidence of compliance must a Chicken Guy developer furnish to Chicken Guy after termination or expiration of the Development Agreement, and within what timeframe?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

  • B. Evidence of Compliance. Developer shall furnish Chicken Guy, within 30 days after the effective date of termination or expiration, evidence (certified to be true, complete, accurate and correct by the chief executive officer of Developer, if Developer is a corporation; by a manager of Developer, if Developer is a limited liability company; or by a general partner of Developer, if Developer is a partnership) satisfactory to Chicken Guy of Developer's compliance with Sections 14.A.(1) through 14.A.(6).

Source: Item 23 — RECEIPTS (FDD pages 50–286)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, a developer must furnish evidence of compliance to Chicken Guy within 30 days after the termination or expiration of the Development Agreement. This evidence must be certified as true, complete, accurate, and correct by the chief executive officer if the developer is a corporation, by a manager if a limited liability company, or by a general partner if a partnership. The certification must be satisfactory to Chicken Guy. The evidence must demonstrate compliance with specific obligations outlined in Section 14.A.(1) through 14.A.(6) of the Development Agreement.

These obligations cover various aspects of the developer's conduct following termination or expiration. This includes ceasing further development of Chicken Guy restaurants (with an exception for restaurants already under a fully executed Franchise Agreement), termination of exclusive development rights in the territory, and adherence to non-compete and confidentiality covenants. The developer must also ensure they do not give the impression of being connected with Chicken Guy, and that they return all materials and information provided by Chicken Guy.

This requirement ensures that Chicken Guy can verify the developer is no longer acting in a manner that could harm the brand or misuse confidential information after the agreement ends. It also allows Chicken Guy to confirm that all outstanding payments have been made. Failure to provide this evidence or any inaccuracies in the certification could lead to further legal action or disputes between Chicken Guy and the former developer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.