If Chicken Guy approves a transfer, does that guarantee the transferee's financial success?

According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisor's approval of a transfer does not guarantee the financial success of the new franchisee. While Chicken Guy evaluates the transferee's experience, financial resources, and business reputation, among other factors, prior to approving a transfer, this assessment does not eliminate the risk of financial difficulties.

Chicken Guy explicitly states that its decision regarding a proposed transfer does not create any liability on its part to the transferee if the transferee experiences financial difficulties after the transfer is approved. This means that even if Chicken Guy approves the transfer, the new franchisee bears the full responsibility for the restaurant's financial performance.

This provision protects Chicken Guy from potential lawsuits or claims arising from a transferee's business struggles. Prospective franchisees should understand that Chicken Guy's approval is based on the information available at the time of the transfer and does not act as a warranty or guarantee of future success. Franchisees should conduct their own due diligence and financial planning to ensure they can successfully operate the Chicken Guy franchise.