What must a Chicken Guy franchisee do to advise Chicken Guy of a proposed transfer?

According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee must take specific steps to inform Chicken Guy of a proposed transfer of ownership. The franchisee is required to advise Chicken Guy in writing about the proposed transfer. Additionally, the franchisee must submit a franchise application for the proposed transferee, or ensure that the proposed transferee submits it. The franchisee must also provide Chicken Guy with a copy of all contracts, agreements, proposals, and any other information Chicken Guy requests related to the proposed transfer.

These requirements ensure that Chicken Guy maintains control over who becomes a franchisee and that the new franchisee meets their standards. By requiring a written notice, application, and all related documents, Chicken Guy can thoroughly evaluate the proposed transfer and the transferee's qualifications. This process helps Chicken Guy protect its brand and ensure that all franchisees are capable of operating the business successfully.

It is important for prospective franchisees to understand these transfer requirements, as failing to comply can result in a breach of the franchise agreement. Franchisees should maintain detailed records of all communications and documents related to any proposed transfer. This will help ensure a smooth transfer process and avoid potential disputes with Chicken Guy. Franchisees should also be aware that Chicken Guy has the right of first refusal, meaning they can choose to purchase the franchise themselves before allowing a transfer to a third party.

Overall, these transfer requirements are typical in the franchise industry, as franchisors need to maintain standards and protect their brand. Prospective Chicken Guy franchisees should carefully review the transfer provisions in the franchise agreement and consult with an attorney to fully understand their rights and obligations.