What form of Franchise Agreement will Chicken Guy use for subsequent Franchised Restaurants?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
The form of Franchise Agreement for Developer's first Franchised Restaurant shall be the form included in the applicable Franchise Disclosure Document as of the date of this Agreement.
The form of Franchise Agreement for the other Franchised Restaurants to be developed by Developer pursuant to this Agreement shall be the then-current standard form in general use at the time of Chicken Guy's notice to Developer.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the form of Franchise Agreement for the developer's first franchised restaurant is the one included in the Franchise Disclosure Document as of the agreement date. For subsequent franchised restaurants, Chicken Guy will use the standard form in general use at the time they notify the developer.
This means that the initial agreement a franchisee signs is fixed to the FDD at that time. However, for any additional Chicken Guy franchises the developer opens, the agreement could be different, reflecting the most current terms Chicken Guy is offering. This allows Chicken Guy to update its franchise agreement as needed to adapt to changing market conditions or business strategies.
A prospective franchisee should pay close attention to the 'then-current standard form' for subsequent agreements, as it may contain different obligations, fees, or requirements than the initial agreement. It is important to understand that the terms can evolve over time, potentially impacting the profitability and operational aspects of future Chicken Guy restaurants developed under the agreement.