When must a Chicken Guy franchisee provide notice of renewal to renew their franchise term?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall give Chicken Guy written notice of whether or not it intends to exercise its renewal option not less than 8 months, nor more than 12 months, before the expiration of the Initial Term.
Franchisee's failure to provide Chicken Guy the required notice in a timely manner constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise for one additional 10-year term at the end of the initial term. To exercise this renewal option, the franchisee must provide Chicken Guy with written notice of their intent to renew.
The timing of this notice is critical: it must be given no less than 8 months and no more than 12 months before the expiration of the initial franchise term. Failing to provide this notice within the specified window constitutes a waiver of the franchisee's right to renew, meaning they will no longer have the option to continue operating the Chicken Guy franchise beyond the initial term.
This requirement ensures that Chicken Guy has adequate time to plan for the future of the franchise location, whether that involves renewal with the existing franchisee or finding a new operator. It also allows the franchisee sufficient time to assess their business performance, consider the costs associated with renewal (such as potential renovation expenses and updated franchise fees), and make an informed decision about their long-term commitment to the Chicken Guy brand.