Are Chicken Guy franchisees required to maintain performance and completion bonds?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You also must maintain performance and completion bonds in forms and amounts, and written by carrier(s), reasonably satisfactory to us.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to maintain performance and completion bonds. The FDD states that franchisees "also must maintain performance and completion bonds in forms and amounts, and written by carrier(s), reasonably satisfactory" to Chicken Guy.
This requirement means that a prospective Chicken Guy franchisee will need to budget for the cost of obtaining these bonds. The specific forms and amounts of the required bonds will be determined by Chicken Guy, and the franchisee must use a carrier that is reasonably satisfactory to Chicken Guy. This gives Chicken Guy control over the selection of the bond provider and the terms of the bond.
Performance and completion bonds are typically used to protect the franchisor in case the franchisee fails to meet certain obligations, such as completing construction or meeting performance targets. The franchisee bears the cost of these bonds. Franchisees should inquire about the typical cost and coverage details of these bonds during their due diligence process to fully understand the financial implications.