After the Chicken Guy franchise agreement is terminated or expires, is the franchisee still obligated to pay any outstanding sums to Chicken Guy and its affiliates?

According to the 2025 Chicken Guy Franchise Disclosure Document, a franchisee is obligated to pay all outstanding sums to Chicken Guy and its affiliates upon termination or expiration of the franchise agreement. Specifically, the franchisee must immediately pay all due and owing amounts. This obligation is part of the broader set of responsibilities a franchisee has upon the end of the agreement.

In addition to settling outstanding financial obligations, the franchisee must also discontinue using Chicken Guy's proprietary marks and trade secrets. This includes removing the branding from the restaurant location, materials, and vehicles, as well as canceling any related advertising and domain names. The franchisee must also return the operations manual and any other materials provided by Chicken Guy.

Furthermore, the franchisee is required to modify the former franchise location to clearly differentiate it from its previous appearance as a Chicken Guy restaurant. This may involve specific changes requested by Chicken Guy to ensure there is no confusion for the public. The franchisee must also provide evidence of compliance with these obligations within 30 days of the termination or expiration date, certified by an authorized representative of the franchisee.

These post-termination obligations are typical in franchising to protect the brand and ensure a clean break between the franchisee and the franchisor. Failure to meet these obligations could result in further legal action or financial penalties, as Chicken Guy reserves the right to enforce the terms of the franchise agreement.