What is the franchisee required to provide to Chicken Guy during the Due Diligence Period?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will afford Chicken Guy and its representatives access to the Franchised Restaurant and the Franchised Location at all reasonable times for the purpose of conducting inspections of the Assets; provided that such access does not unreasonably interfere with Franchisee's operations of the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, during the Due Diligence Period, the franchisee is required to afford Chicken Guy and its representatives access to the Franchised Restaurant and the Franchised Location at all reasonable times. This access is specifically for the purpose of conducting inspections of the Assets. However, this access should not unreasonably interfere with the franchisee's operations of the Franchised Restaurant.
This requirement allows Chicken Guy to thoroughly investigate the business before potentially purchasing it back. The Due Diligence Period lasts for 30 days after Chicken Guy issues a Purchase Notice. During this time, Chicken Guy can assess the ownership, condition, and title of the assets, check for any liens or encumbrances, evaluate environmental and hazardous substances, and verify the validity of contracts and liabilities.
For a prospective franchisee, this means being prepared to provide full access and cooperation to Chicken Guy during this period. It is crucial to maintain accurate records and ensure the restaurant is in good condition to facilitate a smooth inspection process. While Chicken Guy has the right to inspect, the franchisee should ensure that the inspections do not unduly disrupt the daily operations of the restaurant. Clear communication and scheduling can help manage this process effectively.
This clause protects Chicken Guy by allowing them to fully assess the business they are considering purchasing, ensuring they are aware of any potential issues or liabilities. Franchisees should be aware of this requirement and prepared to cooperate fully to avoid any complications during the potential sale of their franchise.