What happens if a Chicken Guy franchisee fails to begin construction or renovation by the Construction Commencement Deadline?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
22. TERMINATION
- A. Termination Without Cure Period. In addition to the grounds for termination that may be stated elsewhere in this Agreement, Chicken Guy may terminate this Agreement, and the rights granted by this Agreement, upon written notice to Franchisee without an opportunity to cure upon the occurrence of any of the following events:
- (1) Franchisee fails to obtain site approval before the Site Approval Deadline.
- (2) Franchisee fails to begin construction or renovation of the Franchised Restaurant on or before the Construction Commencement Deadline.
- (3) Franchisee fails to open the Franchised Restaurant for business on or before the Opening Deadline. Chicken Guy may, in its sole discretion, extend this period to address unforeseen construction delays that are not within Franchisee's control.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, failure to begin construction or renovation of the franchised restaurant by the Construction Commencement Deadline constitutes grounds for termination of the Franchise Agreement. Chicken Guy can terminate the agreement with written notice to the franchisee, without providing an opportunity to cure the failure.
This means that a prospective Chicken Guy franchisee must adhere strictly to the timelines outlined in the agreement regarding site approval and construction commencement. Failure to meet these deadlines can result in the termination of the franchise agreement and the loss of any investments made up to that point. Franchisees should ensure they have a clear understanding of the Construction Commencement Deadline and have a well-defined plan to meet it.
This termination clause underscores the importance of thorough planning, diligent execution, and proactive communication with Chicken Guy during the site selection and construction phases. Franchisees should work closely with their project manager and contractors to mitigate any potential delays and maintain open communication with Chicken Guy to address any unforeseen challenges that may arise. Paying close attention to deadlines and maintaining compliance is crucial for a successful and sustained partnership with Chicken Guy.