What factors are included in the site selection criteria that Chicken Guy establishes?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit a Real Estate Site Application (containing that information as we may reasonably require) for a proposed site which you reasonably believe conforms to site selection criteria we establish
from time to time, including demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by us and our affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises. We may retain the services of third party real estate analysts to evaluate proposed sites for Chicken Guy! Restaurants. You also must furnish us with such financial statements, business plans and other information regarding you and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant.
Upon receipt of your Real Estate Application and other requested materials, our Real Estate Review Committee will review those materials and evaluate the proposed site using the site selection criteria referenced above. Within 15 days after we receive the Real Estate Site Application, your business plan and any additional information that we require (and if the Franchised Restaurant is not developed under a Development Agreement, the signed Franchise Agreement and all requisite fees), we will advise you in writing whether we have approved a particular site. If we do not respond within that time period, we will be deemed to have denied approval of the site. Our approval or denial of approval of a site may be subject to reasonable conditions as determined in our sole discretion.
If you propose to lease or sublease the Franchised Location, you must provide us with a copy of the fully-executed lease or sublease (for a term, including renewal terms, for at least the initial term of the Franchise Agreement) for the Franchised Location within 90 days after we approve the site for the Franchised Location or, for a Nontraditional Restaurant, within 30 days after you sign the Franchise Agreement and the Nontraditional Location Addendum.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees must submit a Real Estate Site Application for a proposed location that meets the brand's site selection criteria. These criteria include several factors that Chicken Guy considers important for a successful restaurant location.
The site selection criteria that Chicken Guy establishes includes demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, and competition from other businesses in the area. The proximity to other businesses, including existing Chicken Guy restaurants or those of its affiliates, is also a factor. The nature of other businesses near the proposed site and other commercial characteristics, such as the purchase price, rental obligations, and lease terms, are considered. Finally, the size, appearance, physical characteristics, and site plan of the premises are all part of the evaluation.
Chicken Guy may use third-party real estate analysts to help evaluate potential sites. Franchisees must also provide financial statements, business plans, and other information about their development and operation plans, including investment and financing details. The Real Estate Review Committee will then assess the proposed site based on these criteria. Chicken Guy will advise the franchisee in writing whether the site is approved within 15 days of receiving the completed application, business plan, and any additional required information. Failure to respond within this timeframe is considered a denial. The approval may also come with specific conditions at Chicken Guy's discretion.
If the franchisee plans to lease or sublease the location, they must provide a copy of the fully executed lease or sublease to Chicken Guy within 90 days of site approval. For Nontraditional Restaurants, this deadline is shorter, requiring submission within 30 days after signing the Franchise Agreement and the Nontraditional Location Addendum. This thorough site selection process is designed to ensure that each Chicken Guy restaurant is set up for success in a suitable location.