What are Chicken Guy franchisees required to purchase from approved suppliers?
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. Neither we nor any of our affiliates are currently designated or approved suppliers of any products.
Our standards and specifications for Chicken Guy! Restaurants are contained in the Manual. A list of approved suppliers is available upon written request. We estimate that the purchase of products that are subject to our standards and specifications represents approximately 100% of your overall purchases in establishing and operating the Franchised Restaurant.
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 must purchase several items from approved suppliers. These include all goods, food products, ingredients, spices, seasonings, mixes, beverages, materials, and supplies used in preparing products. Additionally, franchisees must acquire advertising materials, furniture, fixtures, equipment, smallwares, menus, menu boards, forms, paper and plastic products, and packaging from these approved sources, provided they meet Chicken Guy's standards and specifications. Chicken Guy has the right to mandate the use of specific brands and prohibit others, with the list of approved brands subject to change.
Chicken Guy also requires franchisees to purchase proprietary food products, prepared according to their special recipes and formulas, exclusively from Chicken Guy or designated suppliers. These proprietary products must be used only in accordance with the manual and for items sold at the franchised restaurant. The list of designated and approved suppliers is subject to modification, and franchisees must adhere to these changes once notified in writing. Neither Chicken Guy nor its affiliates are currently designated or approved suppliers of any products.
Furthermore, franchisees are obligated to obtain and install a technology system, including data processing equipment, computer hardware, software, a point-of-sale system, dedicated telephone lines, broadband and wireless internet connections, modems, printers, and other related equipment as specified in the manual. The point-of-sale system must be compatible with Chicken Guy's technology system to provide continuous transaction-level data. Franchisees must also use proprietary software programs and maintain data as prescribed by Chicken Guy, purchasing these items from Chicken Guy or designated suppliers if new or upgraded systems are implemented. The FDD indicates that approximately 100% of a franchisee's overall purchases will be subject to these standards and specifications.