Is a Chicken Guy franchisee required to purchase proprietary software programs, manuals, or computer-related materials from Chicken Guy or designated suppliers if new or upgraded versions are introduced?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and install at your expense a technology system, including such data processing equipment, computer hardware, software, point of sale system, required dedicated telephone lines, broadband and wireless Internet connections, modems, printers and other computer related accessory or peripheral equipment as we may specify in the Manual or otherwise in writing. You must record all transactions at the Franchised Restaurant on a point of sale system that is fully compatible with our technology system and that includes an information interface capability to communicate electronically with our technology system to provide us with continuous transaction level point of sale data. You must utilize any proprietary software programs, system documentation manuals and other proprietary materials provided by us in connection with the operation of the Franchised Restaurant. You must input and maintain in your computer the software programs, data and information as we prescribe. You must purchase from us or our designated suppliers, at prices and upon terms that we determine, the applicable proprietary software programs, manuals and/or computer-related materials if and when we decide to use new or upgraded programs, manuals and/or materials throughout the System. We do not currently receive any payments in connection with these items.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to purchase proprietary software programs, manuals, and computer-related materials from Chicken Guy or its designated suppliers if new or upgraded versions are introduced. The FDD specifies that franchisees must utilize any proprietary software programs, system documentation manuals, and other proprietary materials provided by Chicken Guy in connection with the operation of the franchised restaurant. Franchisees are also obligated to input and maintain in their computers the software programs, data, and information as prescribed by Chicken Guy.
This means that if Chicken Guy decides to implement new or upgraded software, manuals, or computer-related materials throughout the system, franchisees must purchase these items from Chicken Guy or its designated suppliers. The prices and terms of these purchases will be determined by Chicken Guy. While the FDD states that Chicken Guy does not currently receive any payments in connection with these items, this could change in the future.
This requirement ensures uniformity and consistency across all Chicken Guy locations, as all franchisees will be using the same technology and systems. However, it also means that franchisees will incur additional costs whenever Chicken Guy introduces new or upgraded technology. Prospective franchisees should factor in these potential costs when evaluating the overall investment required to open and operate a Chicken Guy franchise. It would be prudent to inquire with Chicken Guy about the typical frequency and cost of such upgrades to better understand the financial implications.