factual

How can a Chicken Guy franchisee access the unaudited report of the operations of each fund?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

We will separately account for all of the Brand Fund and the Regional Advertising Funds that we administer; however, we are not required to segregate any of the funds from our other monies. None of the funds shall be used to defray any of our general operating expenses. We and our affiliates may be reimbursed by each fund for expenses directly related to the fund's marketing programs including conducting market research, preparing advertising and marketing materials and collecting and accounting for contributions to each fund. We may spend in any fiscal year an amount greater or less than the aggregate contribution of all Chicken Guy! Restaurants to each fund during the year or cause each fund to invest any surplus for future use by the fund. We will prepare an unaudited report of the operations of each fund annually, which will be available to you upon written request. Company-operated Restaurants contribute to the various advertising funds and cooperatives an amount equivalent to that contributed by comparable franchised Chicken Guy! Restaurants. In spending advertising monies, we are not obligated to make expenditures for any franchisee that are equivalent or proportionate to that franchisee's contribution or to ensure that any particular franchisee benefits directly or on a pro rata basis from expenditure of the funds. We are not required to spend any amount on advertising in the area where your Franchised Restaurant is located.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees can access the unaudited report of the operations of advertising funds by submitting a written request. Chicken Guy prepares an unaudited report of the operations of each fund annually. This report provides franchisees with insight into how advertising funds are being managed and spent.

These funds consist of contributions from both franchised and company-operated Chicken Guy restaurants. The funds are used for marketing programs, including market research and the creation of advertising materials. Chicken Guy may be reimbursed for expenses directly related to the fund's marketing programs.

While franchisees contribute to these funds, Chicken Guy is not obligated to ensure that expenditures benefit any particular franchisee directly or proportionally to their contribution. Additionally, Chicken Guy is not required to spend any specific amount on advertising in the area where a franchisee's restaurant is located. This means that while franchisees contribute to the advertising funds, the benefits they receive from those funds may vary.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.