What is the Chicken Guy franchisee's obligation regarding accrued monetary obligations when proposing a transfer?

According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee proposing a transfer must satisfy all accrued monetary obligations to Chicken Guy and its affiliates. This includes obligations arising under the Franchise Agreement or otherwise, as well as all other outstanding obligations related to the franchised restaurant. These obligations encompass bills from suppliers, taxes, judgments, and any required governmental reports, returns, affidavits, or bonds.

Chicken Guy retains the discretion to determine whether these obligations have been adequately provided for. This means that even if the franchisee believes they have met their obligations, Chicken Guy's judgment will prevail. To ensure these obligations are met, Chicken Guy reserves the right to require that a reasonable sum of money be placed in escrow.

This requirement protects Chicken Guy by ensuring that a transferring franchisee does not leave behind any unpaid debts or liabilities. For a prospective franchisee looking to buy an existing Chicken Guy location, it is crucial to verify that all outstanding obligations are indeed satisfied or adequately provided for before finalizing the transfer. Failure to do so could result in the transfer being rejected or the assumption of unexpected financial burdens.