Where in the Chicken Guy Franchise Agreement can I find details regarding 'Development Procedures'?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
3. DEVELOPMENT PROCEDURES
If Franchisee is developing the Franchised Restaurant pursuant to a Chicken Guy! Restaurant Development Agreement or Chicken Guy has approved the site for the Franchised Restaurant as of the date of this Agreement, the provisions of this Section 3 shall not apply.
A. Franchisee's Responsibility. Franchisee shall select the site from within, the geographic area identified in the attached Data Sheet ("Site Selection Area"). Prior to the site approval deadline set forth in in the attached Data Sheet ("Site Approval Deadline"), Franchisee shall obtain site approval from Chicken Guy for the Franchised Restaurant. If Chicken Guy has not approved a site within this time period, Chicken Guy, at its option, may terminate this Agreement pursuant to Section 22. Franchisee assumes all cost, liability and expense for locating, obtaining and developing a site for the Franchised Restaurant and constructing and equipping the Franchised Restaurant in accordance with Chicken Guy's standards at an approved site. Chicken Guy reserves the right to require Franchisee to engage the services of a real estate broker approved by Chicken Guy to assist Franchisee in identifying and securing a site for the Franchised
Restaurant. Franchisee shall not make any binding commitments to purchase or lease a site until Chicken Guy has approved the site in writing.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, details regarding 'Development Procedures' are found in Section 3 of Item 22, which discusses contracts within the Chicken Guy! Restaurant Franchise Agreement. However, these procedures may not apply if the franchisee is developing the restaurant under a separate Chicken Guy! Restaurant Development Agreement or if Chicken Guy has already approved the site as of the date of the Franchise Agreement.
If Section 3 does apply, the franchisee is responsible for selecting a site within the designated Site Selection Area, as specified in the attached Data Sheet. The franchisee must obtain site approval from Chicken Guy by the Site Approval Deadline, also found in the Data Sheet. Failure to secure site approval within this timeframe gives Chicken Guy the option to terminate the agreement, as per Section 22. The franchisee bears all costs and liabilities associated with locating, obtaining, and developing the site, as well as constructing and equipping the restaurant according to Chicken Guy's standards.
Chicken Guy retains the right to mandate the franchisee to engage a real estate broker approved by Chicken Guy to aid in site selection. The franchisee is explicitly prohibited from making any binding commitments to purchase or lease a site until Chicken Guy provides written approval. This process ensures that the location meets Chicken Guy's criteria and standards before the franchisee incurs significant financial obligations.