Does the Chicken Guy franchise agreement require that the franchisee's execution of the agreement 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 the 2025 Chicken Guy Franchise Disclosure Document, the franchisee must warrant that their execution of the Franchise Agreement does not conflict with any other third-party agreements. Specifically, the franchisee must confirm that signing the Chicken Guy agreement will not violate the terms of any existing contracts or obligations they have with other entities. This representation is made to Chicken Guy and survives the termination of the agreement.
This requirement is a standard practice in franchising to ensure that franchisees are able to fully commit to the franchise agreement without legal encumbrances from other obligations. It protects Chicken Guy from potential legal issues that could arise if a franchisee is bound by conflicting agreements.
For a prospective Chicken Guy franchisee, this means carefully reviewing all existing contracts and obligations before signing the franchise agreement. It is important to disclose any potential conflicts to Chicken Guy upfront. Failure to do so could result in a breach of the franchise agreement and potential legal consequences. Franchisees should seek legal counsel to ensure they fully understand their obligations and that there are no conflicts of interest.