What is the Chicken Guy franchisee's responsibility regarding the purchase of an opening inventory?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Purchase an opening inventory for the Franchised Restaurant of only authorized and approved products and other materials and supplies.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee is responsible for purchasing an opening inventory for the Franchised Restaurant. This inventory must consist of only authorized and approved products, materials, and supplies.
Chicken Guy maintains control over the goods and materials used in the restaurant. Franchisees must maintain a sufficient inventory of approved goods and materials in terms of quality and variety to maximize the restaurant's potential. Chicken Guy may approve one or more suppliers for any goods or materials, and this approval might be limited to specific items. Chicken Guy can also concentrate purchases with specific suppliers to potentially secure lower prices, better advertising support, or services for groups of Chicken Guy restaurants.
If a franchisee wishes to purchase goods or materials from a supplier not already approved by Chicken Guy (excluding items they are required to purchase directly from Chicken Guy or its designated suppliers), they must submit a written request for approval. Chicken Guy has the right to inspect the supplier's facilities and request information, specifications, and samples for testing. The franchisee may have to cover the costs of reviewing the supplier and auditing the facility, if needed. Chicken Guy will then notify the franchisee of its decision within 60 days.
Chicken Guy also provides pre-opening assistance to franchisees regarding purchasing and inventory control, among other aspects of restaurant development and operation. This support aims to ensure that franchisees start with the right inventory and maintain it according to Chicken Guy's standards.