What is a Chicken Guy franchisee prohibited from doing after receiving written notification of a supplier no longer being designated or approved?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy may from time to time modify the list of designated suppliers and/or approved suppliers, and Franchisee shall not, after receipt of such modification in writing, order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are restricted from ordering proprietary products or any goods or materials from suppliers who are no longer designated or approved by Chicken Guy, after receiving written notification of such changes. This stipulation is in place to maintain the reputation and goodwill of Chicken Guy restaurants, which the company believes is dependent on the sale of distinctive, high-quality products.
This requirement ensures that franchisees adhere to Chicken Guy's standards regarding the products used in their restaurants. It allows Chicken Guy to control the quality and consistency of its offerings across all franchise locations. The written notification serves as an official update to the list of approved suppliers, and franchisees must comply with these changes to remain in good standing with the company.
For a prospective Chicken Guy franchisee, this means they must stay informed about any modifications to the approved supplier list and immediately cease ordering from any supplier once they receive written notice of their removal from the list. Failure to comply with this requirement could lead to a default under the franchise agreement.