What factors will Chicken Guy use to determine the Protected Area?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you comply with the Franchise Agreement and any other agreements with us or our affiliates and are current on all obligations due us and our affiliates, during the term of the Franchise Agreement, we and our affiliates will not operate, or license others to operate, Chicken Guy! Restaurants in a geographic area surrounding the Franchised Location ("Protected Area"). This restriction applies only to Chicken Guy and does not apply to restaurants identified in whole or in part by the name and mark "Chicken Guy!" under construction or in operation in the Protected Area as of the date of the Franchise Agreement. The size of the Protected Area will vary depending on, among other things, the location in which you wish to operate the Franchised Restaurant. Typically, the Protected Area will be set as a radius around the Franchised Location. The perimeters of the Protected Area may be described by specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks, or other similar boundary descriptions. Factors that we will use in order to determine the Protected Area include demographics, population density and number of households in the area, the growth profile of the populations within the area, the competitive environment in that market, and other factors that we will take into account. If you develop Franchised Restaurants under a Development Agreement, we will determine the Protected Area for each Franchised Restaurant according to the policies that are then in place when you sign each Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the factors used to determine the Protected Area around a franchised location include demographics, population density and the number of households in the area, the growth profile of the populations within the area, and the competitive environment in that market. The Protected Area is a geographic area surrounding the Franchised Location where Chicken Guy will not operate or license others to operate Chicken Guy restaurants, provided the franchisee is in compliance with their agreements.
The size of the Protected Area will vary depending on the location. Typically, it is set as a radius around the Franchised Location, with perimeters described by specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks, or other similar boundary descriptions. This means that the exact shape and size of a franchisee's protected territory can differ significantly based on local geography and population distribution.
It's important to note that the restriction applies only to Chicken Guy restaurants and does not apply to restaurants already under construction or in operation in the Protected Area as of the date of the Franchise Agreement. Furthermore, Chicken Guy retains the right to operate or license others to operate restaurants identified in whole or in part by the name and mark "Chicken Guy!" and/or utilizing the System in the Protected Area at Nontraditional Locations. This could include locations such as airports, universities, or stadiums. Chicken Guy also reserves the right to sell products under the Chicken Guy name through other channels of distribution, such as foodservice facilities primarily identified by a third party's trademark.