Does the Chicken Guy Franchise Agreement require the franchisee to warrant that the execution of the agreement does not conflict with any other agreements with third parties?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents, acknowledges and warrants to Chicken Guy (and Franchisee agrees that these representations, acknowledgments and warranties shall survive termination of this Agreement) that:
- B. Signatories to This Agreement. The persons signing this Agreement on behalf of Franchisee have full authority to enter into this Agreement and the other agreements contemplated by the parties. Execution of this Agreement or such other agreements by Franchisee does not and will not conflict with or interfere with, directly or indirectly, intentionally or otherwise, with the terms of any other agreement with any other third party to which Franchisee or any person with an ownership interest in Franchisee is a party.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Franchise Agreement requires the franchisee to represent, acknowledge, and warrant that their execution of the agreement does not conflict with any other third-party agreements. This representation survives the termination of the agreement, meaning it remains in effect even after the franchise relationship ends. This is a standard clause in franchise agreements, intended to protect the franchisor from legal issues that may arise if the franchisee has conflicting obligations.
Specifically, the franchisee warrants that signing the Chicken Guy Franchise Agreement, or any other agreements related to it, will not interfere with the terms of any other agreement they or any person with an ownership interest in the franchise is a party to. This includes any agreement with another business, a supplier, or any other entity.
This clause is significant for prospective franchisees because it emphasizes the importance of reviewing all existing agreements before signing the Chicken Guy Franchise Agreement. Franchisees should ensure they are not violating any existing contracts by entering into the franchise agreement. Failure to do so could result in legal complications and potential breaches of contract, exposing the franchisee to liability.