What must a Chicken Guy franchisee do if they want to purchase goods from a supplier not previously approved by Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) If Franchisee proposes to purchase any goods or materials (that Franchisee is not required to purchase from Chicken Guy, an affiliate of Chicken Guy or a designated supplier) from a supplier that Chicken Guy has not previously approved, Franchisee shall submit to Chicken Guy a written request for such approval, or shall request the supplier to do so itself.
Chicken Guy has the right to require, as a condition of its approval, that its representatives be permitted to inspect the supplier's facilities, and that such information, specifications and samples as Chicken Guy reasonably designates be delivered to Chicken Guy and/or to an independent, certified laboratory designated by Chicken Guy for testing prior to granting approval.
A charge not to exceed the Chicken Guy's actual costs of reviewing the supplier or distributor and auditing the facility, if needed, shall be paid by Franchisee.
Chicken Guy will notify Franchisee within 60 days of Franchisee's request as to whether Franchisee is authorized to purchase such products from that supplier.
Chicken Guy reserves the right, at its option, to re-inspect the facilities and products of any such approved supplier and to revoke its approval upon the suppliers' failure to continue to meet any of the foregoing criteria.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if a franchisee wants to purchase goods or materials from a supplier not already approved by Chicken Guy, they must submit a written request for approval. This request can come either from the franchisee directly or from the supplier. Chicken Guy can then require an inspection of the supplier's facilities.
As part of the approval process, Chicken Guy may also require that the supplier provide information, specifications, and samples for testing. These materials may be sent to Chicken Guy or to an independent, certified laboratory designated by Chicken Guy. The franchisee is responsible for covering the costs associated with reviewing the supplier and auditing the facility, although these charges cannot exceed Chicken Guy's actual costs.
Chicken Guy will then notify the franchisee within 60 days of the request whether they are authorized to purchase from the proposed supplier. Even if a supplier is approved, Chicken Guy retains the right to re-inspect the facilities and products and can revoke approval if the supplier fails to continue meeting Chicken Guy's criteria. This ensures that all suppliers meet the brand's standards consistently.
This process is fairly standard in franchising, as franchisors need to maintain quality control and protect brand reputation. Franchisees should factor in these potential costs and the 60-day waiting period when considering new suppliers. It is also important to maintain an adequate inventory of approved goods to ensure smooth operations.