factual

What is the franchisee's obligation regarding access to the Franchised Restaurant when Chicken Guy is considering purchasing the assets?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee will afford Chicken Guy and its representatives access to the Franchised Restaurant and the Franchised Location at all reasonable times for the purpose of conducting inspections of the Assets; provided that such access does not unreasonably interfere with Franchisee's operations of the Franchised Restaurant.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, during the Due Diligence Period, the franchisee must allow Chicken Guy and its representatives access to the Franchised Restaurant and location at all reasonable times. This access is specifically for conducting inspections of the assets. However, this access should not unreasonably interfere with the franchisee's operation of the restaurant.

This requirement allows Chicken Guy to thoroughly evaluate the business before making a final decision on the purchase. The due diligence includes assessing the ownership, condition, and title of the assets, any liens or encumbrances, environmental factors, and the validity of contracts.

For a prospective franchisee, this means they must be prepared to cooperate with Chicken Guy during this inspection period. While the franchisee can continue operating the restaurant, they need to accommodate Chicken Guy's need for access and information. It's important to note the stipulation that access should not 'unreasonably interfere' with operations, suggesting there is room for discussion and arrangement to minimize disruption.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.