What happens if Chicken Guy modifies the list of designated suppliers?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy may from time to time modify the list of designated suppliers and/or approved suppliers, and Franchisee shall not, after receipt of such modification in writing, order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the reputation of Chicken Guy restaurants relies on high-quality food products and beverages. Franchisees must purchase proprietary products exclusively from Chicken Guy or designated suppliers. Chicken Guy has the authority to modify the list of designated and approved suppliers. If Chicken Guy modifies these lists, franchisees are obligated to cease ordering proprietary products from any supplier who is no longer designated or any goods/materials from a supplier who is no longer approved, upon receiving written notification of the change.
This means a Chicken Guy franchisee must stay informed about any changes to the approved supplier list and immediately adjust their purchasing practices accordingly. Failure to comply with these changes could lead to a breach of the franchise agreement and potential penalties. Franchisees need to maintain open communication with Chicken Guy to ensure they receive timely updates regarding supplier modifications.
This requirement ensures consistency and quality control across all Chicken Guy locations, protecting the brand's reputation. However, it also limits the franchisee's autonomy in sourcing products and materials. Franchisees should consider the potential impact of these supplier changes on their operating costs and supply chain logistics. It is important to factor in the possibility of needing to find new suppliers quickly and adapt to any changes in product specifications or pricing that may result from these modifications.