What factors does Chicken Guy consider when determining whether a franchisee has sufficient financial capabilities to properly develop, operate, and maintain a proposed Chicken Guy restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee acknowledges that, in order to preserve and enhance the reputation and goodwill of all restaurants franchised by Chicken Guy and the goodwill of the Proprietary Marks, all Chicken Guy! Restaurants must be properly developed, operated and maintained. Accordingly, Franchisee agrees that Chicken Guy may refuse to approve a site for a proposed Franchised Restaurant unless Franchisee demonstrates sufficient financial capabilities, in Chicken Guy's sole judgment, applying standards consistent with criteria Chicken Guy uses to establish restaurants in other comparable market areas, to properly develop, operate and maintain the proposed Franchised Restaurant. To this end, Franchisee shall furnish Chicken Guy with such financial statements and other information regarding Franchisee and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant, as Chicken Guy reasonably may require.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy considers a franchisee's financial capabilities when approving a site for a proposed restaurant. Chicken Guy wants to preserve the reputation and goodwill of all its franchised restaurants.
To determine whether a potential franchisee has sufficient financial capabilities, Chicken Guy applies standards consistent with the criteria it uses to establish restaurants in comparable market areas. The prospective franchisee must furnish Chicken Guy with financial statements and other information regarding themselves, as well as details about the development and operation of the proposed restaurant. This includes investment and financing plans.
Ultimately, Chicken Guy uses this information to judge whether the franchisee can properly develop, operate, and maintain the proposed franchised restaurant. Chicken Guy has sole discretion in this determination.