What happens if Chicken Guy does not approve a site within the relevant time period?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not select the site for your Franchised Restaurant. You select the site for your Franchised Restaurant (subject to our approval). If no site has been designated at the time you sign the Franchise Agreement, you must select the site within the Site Selection Area mutually agreed to in the Franchise Agreement, and you must obtain our approval for a site before the Site Approval Deadline specified in the Franchise Agreement (which will typically be 180 days after you sign the Franchise Agreement). We may require you to engage the services of a real estate broker approved by us to assist you in identifying and securing a site for your Franchised Restaurant. If you develop the Franchised Restaurant under a Development Agreement, you must obtain our approval of a site by the site approval date identified in the Development Schedule contained in the Development Agreement. If we do not approve a site within the relevant time period, we, at our option, may terminate the Development Agreement or the Franchise Agreement, respectively. If you sign a Development Agreement, we will review your site applications for each Franchised Restaurant under the site selection criteria that have in place when we receive your application. If you develop a Nontraditional Restaurant, you must purchase or lease the location before you sign the Franchise Agreement and the Nontraditional Location Addendum. As noted in Item 1, you should not acquire any leasehold or ownership interest in a site for your Franchised Restaurant until you have been approved as a franchisee, and we have approved the site in writing.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are responsible for selecting their restaurant site, subject to the franchisor's approval. The franchisee must select a site within a mutually agreed-upon Site Selection Area, and obtain Chicken Guy's approval before the Site Approval Deadline specified in the Franchise Agreement, typically 180 days after signing. For franchisees developing multiple locations under a Development Agreement, site approval must be obtained by the date in the Development Schedule.
If Chicken Guy does not approve a site within the relevant timeframe, they have the option to terminate either the Development Agreement or the Franchise Agreement. This means that the franchisee could lose the rights to develop a Chicken Guy restaurant if a suitable location is not approved in time.
Prospective franchisees should carefully review the site selection criteria and approval deadlines outlined in the Franchise and Development Agreements. It is crucial to proactively identify and propose sites that meet Chicken Guy's requirements and to maintain open communication with the franchisor throughout the site selection process. Engaging a real estate broker approved by Chicken Guy may also be a condition to assist in finding and securing a suitable location.