What is the Chicken Guy franchisee required to do after removing the proprietary signs and trade fixtures?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord consents to Franchisee's use of the proprietary signs, distinctive exterior and interior designs and layouts and the Proprietary Marks prescribed by Franchisor. Upon expiration or the earlier termination of the Lease, Landlord consents to permit Franchisee, at Franchisee's expense, to remove all such items and other trade fixtures, so long as Franchisee makes any necessary repairs to the building caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, upon the expiration or earlier termination of the lease, the franchisee is responsible for making necessary repairs to the building caused by the removal of proprietary signs and trade fixtures. This obligation is part of the agreement between the landlord and the franchisee, ensuring that the premises are not left in disrepair after the Chicken Guy restaurant ceases operation at that location. The franchisee bears the expense of removing these items and rectifying any damage resulting from their removal.
This requirement protects the landlord's property and ensures that the space can be readily repurposed or leased to another tenant without the burden of additional repair costs. It also aligns with standard franchise practices, where franchisees are typically responsible for returning leased premises in good condition, accounting for normal wear and tear. The lease agreement explicitly states that the landlord consents to the franchisee's removal of these items, provided that the franchisee makes the necessary repairs.
For a prospective Chicken Guy franchisee, this means budgeting for potential repair costs at the end of the lease term. These costs can vary depending on the extent of the alterations made to the property and the specific requirements of the landlord. It is advisable for franchisees to maintain detailed records of all modifications made to the premises during their tenancy to accurately assess and manage these end-of-term expenses. Furthermore, franchisees should negotiate clear terms regarding the scope of required repairs with the landlord to avoid disputes and unexpected costs upon termination of the lease.