What is the franchisee's obligation to Chicken Guy if any of the governing documents are modified or changed?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a corporation, copies of Franchisee's Articles of Incorporation, bylaws, other governing documents and any amendments, including the resolution of the Board of Directors authorizing entry into and performance of this Agreement, and all shareholder agreements, including buy/sell agreements, have been furnished to Chicken Guy.
If Franchisee is a limited liability company, copies of Franchisee's Articles of Organization, Management Agreement, other governing documents and any amendments, including the resolution of the Managers authorizing entry into and performance of this Agreement, and all agreements, including buy/sell agreements, among the members have been furnished to Chicken Guy.
If Franchisee is a partnership, copies of Franchisee's written partnership agreement, other governing documents and any amendments, as well as all agreements, including buy/sell agreements, among the partners have been furnished to Chicken Guy, in addition to evidence of consent or approval of the entry into and performance of this Agreement by the requisite number or percentage of partners, if that approval or consent is required by Franchisee's written partnership agreement.
When any of these governing documents are modified or changed, Franchisee promptly shall provide copies to Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if a franchisee's governing documents (such as Articles of Incorporation, Articles of Organization, Management Agreement, partnership agreements, bylaws, or shareholder agreements) are modified or changed, the franchisee is required to promptly provide copies of these changes to Chicken Guy. This obligation ensures that Chicken Guy remains informed about the current structure and operational agreements of its franchisees.
This requirement is important for Chicken Guy to maintain oversight and ensure compliance with the franchise agreement. By staying informed about changes in the franchisee's governing documents, Chicken Guy can assess whether these changes might affect the franchisee's ability to meet its obligations under the franchise agreement. This also allows Chicken Guy to ensure that the ownership and management structure of the franchisee remains consistent with the initial representations made during the franchise application process.
For a prospective Chicken Guy franchisee, this means maintaining diligent record-keeping and promptly communicating any changes to their organizational documents to Chicken Guy. Failure to do so could potentially result in a breach of the franchise agreement. Franchisees should establish internal procedures to ensure that any modifications to their governing documents are properly documented and communicated to Chicken Guy in a timely manner. This requirement is a standard practice in franchising, allowing the franchisor to protect its brand and ensure consistent operations across all franchise locations.