What financial information must a Developer furnish to Chicken Guy for site approval?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, Developer agrees that Chicken Guy may refuse to approve a site for a proposed Franchised Restaurant unless Developer 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, Developer shall furnish Chicken Guy with such financial statements and other information regarding Developer (or its Affiliated Entity, as defined in Section 3.D.) 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 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a Developer must demonstrate sufficient financial capabilities to properly develop, operate, and maintain a proposed Franchised Restaurant. To this end, the Developer is required to furnish Chicken Guy with financial statements and other information regarding the Developer (or its Affiliated Entity).
This includes investment and financing plans for the proposed Franchised Restaurant, as Chicken Guy may reasonably require. Chicken Guy will use standards consistent with criteria it uses to establish restaurants in other comparable market areas to judge the financial capabilities of the developer.
This requirement ensures that all Chicken Guy restaurants are properly developed and maintained, which preserves the reputation and goodwill of the brand. It also protects Chicken Guy from potential losses or damages that could arise from a poorly financed or managed franchise. The approval of a site by Chicken Guy does not guarantee any specific sales volume or level of profitability.