After the Chicken Guy Franchise Agreement terminates, who is responsible for altering the premises to distinguish it from a Chicken Guy restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) Franchisee promptly shall make such alterations and modifications to the Franchised Location as may be necessary to clearly distinguish to the public the Franchised Location from its former appearance and also make those specific additional changes as Chicken Guy may request for that purpose.
If Franchisee fails to promptly make these alterations and modifications, Chicken Guy shall have the right (at Franchisee's expense, to be paid upon Franchisee's receipt of an invoice from Chicken Guy) to do so without being guilty of trespass or other tort.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee is primarily responsible for making alterations and modifications to the franchised location after the termination or expiration of the Franchise Agreement. These changes must clearly distinguish the location from its former appearance as a Chicken Guy restaurant. Additionally, the franchisee must make any specific changes that Chicken Guy may reasonably request for this purpose. This obligation ensures that the public is not confused into thinking the location is still associated with the Chicken Guy brand.
However, if the franchisee fails to promptly make these necessary alterations and modifications, Chicken Guy retains the right to step in and perform the work themselves. In this case, the franchisee is responsible for covering the expenses incurred by Chicken Guy for these alterations. This ensures that the location is appropriately modified to protect the Chicken Guy brand and prevent any potential confusion among customers. The franchisee is obligated to pay these expenses upon receiving an invoice from Chicken Guy.
The landlord also plays a role in this process. The landlord agrees that the franchisee has the right to make alterations and modifications to distinguish the premises from a Chicken Guy restaurant after the Franchise Agreement terminates. Furthermore, the landlord agrees that if the franchisee fails to make these changes promptly, Chicken Guy has the right to do so, provided they repair any damage caused by the alterations. This multi-party agreement ensures that the responsibility for de-branding the location is clearly defined and that Chicken Guy has the means to protect its brand identity even after a franchise agreement ends.