Are Chicken Guy franchisees obligated to purchase new or upgraded proprietary software programs?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE(1) | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Software Licenses and Updates | Actual cost of license fee and updates | As incurred | You must purchase and use any new or upgraded proprietary software programs, system documentation manuals and other proprietary materials that we may develop or designate for use in the System in the future. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to purchase and use new or upgraded proprietary software programs. The cost will be the actual cost of the license fee and updates, and payment is due as incurred. This obligation extends to system documentation manuals and other proprietary materials that Chicken Guy may develop or designate for use in the System in the future.
This requirement means that franchisees must budget for ongoing technology expenses in addition to the initial franchise fee and other startup costs. The actual cost of these software licenses and updates can vary, making it difficult to predict future expenses precisely. Franchisees should inquire about the typical frequency and cost of these updates to better understand the financial implications.
It is common in franchising for franchisors to mandate specific software and technology systems to ensure consistency and efficiency across the brand. These systems often cover point-of-sale, inventory management, customer relationship management, and other essential business functions. While these systems can improve operations, franchisees bear the financial responsibility for keeping them current. Failing to adopt required software updates could put a Chicken Guy franchisee in breach of the franchise agreement.