factual

What happens if construction of a Chicken Guy restaurant is not in substantial compliance with approved plans?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

All construction must be in accordance with Plans approved by Chicken Guy and must comply in all respects with applicable laws, ordinances and local rules and regulations.

The Franchised Restaurant may not open if construction has not been performed in substantial compliance with Plans approved by Chicken Guy, and this Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time.

Chicken Guy may, in its sole discretion, furnish guidance to Franchisee in developing the Franchised Restaurant and may periodically inspect the premises during its development.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, if a franchisee does not substantially comply with the approved construction plans, they may not be allowed to open the restaurant. Furthermore, the Franchise Agreement could be terminated if the non-compliance isn't resolved within a commercially reasonable timeframe. This underscores the critical importance of adhering to Chicken Guy's approved plans during construction.

Chicken Guy retains the right to inspect the premises during development and may offer guidance. The franchisee is expected to fully cooperate with Chicken Guy and its designees during inspections. This includes providing samples of construction materials and access to the construction site. Franchisees are also expected to use only registered architects, engineers, and licensed contractors.

Chicken Guy also requires the franchisee to get written approval for any changes to the plans. The franchisee must get Chicken Guy's approval before starting site preparation or construction. The franchisee must also get all the necessary permits and licenses. Franchisees must notify Chicken Guy 30 days before they expect construction to be completed and a certificate of occupancy to be issued. Chicken Guy can then conduct a final inspection to ensure compliance with the agreement.

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.