Is a Chicken Guy franchisee required to renovate and modernize their 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.
Within 60 days after receipt of Chicken Guy's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans for the required modernization.
These drawings and plans must be submitted to, and their use approved by, Chicken Guy prior to the commencement of work.
Franchisee shall complete the required modernization within the time reasonably specified by Chicken Guy in its written notice.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, franchisees must make capital expenditures to renovate and modernize their restaurant to meet current brand standards if they want to renew their franchise agreement. This includes conforming to interior and exterior designs, décor, color schemes, furnishings, equipment, and the presentation of proprietary marks, aligning with the image of new Chicken Guy restaurants at the time of renewal. These renovations may involve structural changes, remodeling, redecoration, and modifications to existing improvements.
Chicken Guy requires franchisees to prepare and complete drawings and plans for the required modernization within 60 days after receiving written notice. These plans must be submitted to and approved by Chicken Guy before any work begins. The franchisee must complete the modernization within the timeframe specified by Chicken Guy in its written notice.
This requirement ensures that all Chicken Guy restaurants maintain a consistent and up-to-date brand image. While this benefits the overall system, franchisees should be aware of the potential costs associated with these renovations. These costs are in addition to the renewal fee. Franchisees should factor in these potential capital expenditures when considering whether to renew their franchise agreement.