What are franchisees required to do with Chicken Guy's proprietary products?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require that you: (1) purchase those proprietary food products that will be prepared by or for Chicken Guy! Restaurants according to our proprietary special recipes and formulas ("proprietary products") only from us or a third party designated and licensed by us to prepare and sell such products ("designated suppliers"); (2) use the proprietary products only in accordance with the Manual and for items sold at the Franchised Restaurant; and (3) purchase from manufacturers, distributors, vendors and suppliers approved by us ("approved suppliers") all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials and supplies used in the preparation of products, as well as advertising materials, furniture, fixtures, equipment, smallwares, menus, menu boards, forms, paper and plastic products, packaging or other materials that meet our standards and specifications. We have the right to require that you use only certain brands and to prohibit you from using other brands. We may from time to time modify the list of approved brands (including certain brands of soft drinks and bottled beverages), and you may not, after receipt of such modification in writing, reorder any brand that is no longer an approved brand. We may from time to time modify the list of designated suppliers and/or approved suppliers, and you may not, after receipt of such modification in writing, order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier.
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 have specific requirements regarding the brand's proprietary food products. Franchisees must purchase these proprietary products, which are prepared according to Chicken Guy's special recipes and formulas, exclusively from Chicken Guy itself or from designated third-party suppliers licensed by Chicken Guy. These designated suppliers are the only authorized sources for these specific food items.
Furthermore, franchisees are obligated to use the proprietary products strictly in accordance with the guidelines provided in the Chicken Guy manual. This means the products must be used only for items sold at the franchised restaurant and in the manner prescribed by Chicken Guy. This ensures consistency and quality control across all franchise locations.
Chicken Guy also maintains the right to modify the list of designated suppliers. Franchisees must stay informed of these changes and, upon written notification, cease ordering proprietary products from any supplier that is no longer designated. This system allows Chicken Guy to control the quality and sourcing of key ingredients, but it also means franchisees must remain vigilant about approved supplier lists to avoid non-compliance.