Is a Chicken Guy franchisee responsible for obtaining all applicable real estate permits and operational licenses?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with all applicable local, state and federal laws and regulations, including health, sanitation, food handling, food preparation, menu labeling, waste disposal, smoking restrictions, alcoholic beverage restrictions, discrimination, labor, employment, sexual harassment and advertising laws. Some laws require point of sale disclosures, including statements concerning nutritional and dietary characteristics of the food served at your Franchised Restaurant. There are other laws and regulations applicable to businesses generally (such as the Americans with Disabilities Act) with which you must comply. You also must obtain all applicable real estate permits and operational licenses. Some states limit the available number of liquor licenses. In such markets you are likely to be required to pay grossly inflated prices on the secondary market to obtain a liquor license. The purchase of a liquor license may substantially increase your required initial investment.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are responsible for obtaining all applicable real estate permits and operational licenses. This requirement extends to compliance with all local, state, and federal laws and regulations. These laws and regulations include those pertaining to health, sanitation, food handling, food preparation, menu labeling, waste disposal, smoking restrictions, alcoholic beverage restrictions, discrimination, labor, employment, sexual harassment, and advertising.
Furthermore, franchisees must adhere to laws that require point-of-sale disclosures, such as statements about the nutritional and dietary characteristics of the food served. Compliance with broader business regulations, like the Americans with Disabilities Act, is also mandatory. In states where liquor licenses are limited, franchisees may need to pay inflated prices on the secondary market to obtain one, which can significantly increase the initial investment required to open a Chicken Guy franchise.
In practical terms, this means that prospective Chicken Guy franchisees need to budget time and money for securing all necessary permits and licenses. They should also consult with legal and regulatory experts to ensure full compliance with all applicable laws, both industry-specific and general business regulations. The potential for high costs associated with acquiring liquor licenses in certain areas should also be carefully considered during the initial investment planning.