What is the franchisee obligated to do with the Chicken Guy restaurant between Chicken Guy's Purchase Notice and the Closing?

According to Chicken Guy's 2025 Franchise Disclosure Document, after Chicken Guy issues a Purchase Notice but before the Closing, the franchisee has specific obligations regarding the operation and maintenance of the restaurant. The franchisee must continue to operate the Franchised Restaurant in the usual and ordinary course of business. This means maintaining normal business operations as if the sale were not pending. The franchisee is also required to keep all insurance policies in full force, ensuring that the restaurant remains adequately insured during this period.

Chicken Guy also has the right to appoint a manager, at Chicken Guy's expense, to oversee the day-to-day operations of the restaurant. In this case, the franchisee is obligated to cooperate fully with the appointed manager and instruct their employees to do the same. This could involve ceding some control over daily operations to the Chicken Guy-appointed manager. Alternatively, Chicken Guy may require the franchisee to close the Franchised Restaurant during this period, but without removing any assets from the location.

These stipulations ensure that the restaurant's value and operational integrity are maintained during the transition period. For a prospective franchisee, this means understanding that if Chicken Guy decides to repurchase the restaurant, the franchisee must continue operating the business or close it as directed, while also cooperating with any manager appointed by Chicken Guy. This also highlights the importance of maintaining adequate insurance coverage and understanding the potential for a change in management during this period.