Is a Chicken Guy franchisee required to make capital expenditures to renovate the restaurant as a condition of renewal?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisee shall make the capital expenditures required to renovate and modernize the Franchised Restaurant to conform to the interior and exterior designs, décor, color schemes, furnishings and equipment and presentation of the Proprietary Marks consistent with the image of the System for new Chicken Guy!
Restaurants at the time Franchisee provides Chicken Guy the renewal notice, including such structural changes, remodeling, redecoration and modifications to existing improvements as may be necessary to do so.
- (c) Franchisee and its employees at the Franchised Restaurant shall be in compliance with Chicken Guy's then-current training requirements.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to make capital expenditures to renovate and modernize the restaurant as a condition of renewal. Specifically, to continue as a franchisee for the 10-year Renewal Term, the franchisee must renovate the Franchised Restaurant to conform to the image of the System for new Chicken Guy! Restaurants at the time the franchisee provides Chicken Guy the renewal notice. This includes structural changes, remodeling, redecoration, and modifications to existing improvements.
This requirement ensures that all Chicken Guy locations maintain a consistent and up-to-date brand image. The costs for these renovations are borne by the franchisee, which can be a significant expense. Franchisees should factor in these potential costs when considering whether to renew their franchise agreement.
Chicken Guy will provide preliminary information regarding the actions a franchisee must take to satisfy the renovation and training requirements within 4 months after receiving the franchisee's written notice of their desire to renew. Franchisees must also comply with Chicken Guy's then-current training requirements for themselves and their employees at the Franchised Restaurant as another condition of renewal.