Following the expiration or termination of the Development Term, where does the restriction against operating a competing restaurant business apply for Chicken Guy, besides the Development Territory?

According to Chicken Guy's 2025 Franchise Disclosure Document, after the Development Term expires or terminates, a franchisee is restricted from operating a competing restaurant business within the Development Territory, within 2 miles of the border of the Development Territory, and within 2 miles of any then-existing Chicken Guy restaurant. This restriction can be altered with written approval from Chicken Guy.

The FDD defines a competing restaurant as one that features chicken as a primary menu item, meaning chicken menu items comprise at least 20% of sales, or one whose method of operation or trade dress is similar to that employed in the Chicken Guy system. This broad definition means franchisees need to be very careful about any restaurant ventures they consider after their Development Term ends, even those that might seem unrelated to Chicken Guy.

It's important to note that this restriction does not apply to a developer's existing restaurant or foodservice operations, if any, which are identified in the attached Data Sheet, nor shall it apply to other restaurants operated by Developer that are franchised by Chicken Guy or its affiliates. This provides some flexibility for franchisees who already have established businesses. If any part of these restrictions is found to be unreasonable in time or distance, each month of time or mile of distance may be deemed a separate unit so that the time or distance may be reduced by appropriate order of the court to that deemed reasonable.