factual

Does Chicken Guy grant franchisees a license to use data pertaining to the franchised restaurant?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

All data pertaining to, derived from, or displayed at the Franchised Restaurant (including without limitation data pertaining to or otherwise about Franchised Restaurant customers) is and shall be Chicken Guy's exclusive property, and Chicken Guy hereby grants Franchisee a royalty-free non-exclusive license to use that data during the Initial Term of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are granted a royalty-free, non-exclusive license to use data pertaining to, derived from, or displayed at their franchised restaurant during the initial term of the franchise agreement. However, all such data, including data about customers, is the exclusive property of Chicken Guy.

Chicken Guy requires franchisees to install a technology system, including a point-of-sale (POS) system, that is compatible with Chicken Guy's technology system. This system must be capable of providing Chicken Guy with continuous transaction-level data. Chicken Guy has the right to retrieve any data and information from the franchisee's POS system as it deems appropriate, including daily sales, menu mix, and other data.

This arrangement allows Chicken Guy to maintain control over customer and sales data, which it can use for marketing, analysis, and improving the overall system. While franchisees can use the data to manage their individual restaurants, they do not own the data and must share it with Chicken Guy. Franchisees should be aware that their use of this data is limited to the initial term of the agreement and is subject to Chicken Guy's oversight.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.