If the franchisee for Chicken Guy is an individual, are they personally liable for breaches of the Franchise Agreement?

According to the 2025 Chicken Guy Franchise Disclosure Document, if the franchisee is an individual or a partnership comprised solely of individuals, each individual is jointly and severally bound by, and personally liable for, the timely and complete performance and any breach of every provision within the Franchise Agreement. This means that each individual franchisee is fully responsible for upholding the terms of the agreement and can be held personally accountable for any failures to do so.

This personal liability extends throughout the term of the agreement, regardless of any ownership transfers made for convenience. Even if the ownership structure changes, the original individual franchisees remain responsible for the franchise's performance and adherence to the agreement's terms. This provision ensures that Chicken Guy has recourse to the personal assets of the franchisees in case of breaches, offering a layer of security for the franchisor.

For a prospective Chicken Guy franchisee, this clause highlights the significant personal risk involved in signing the Franchise Agreement as an individual or partnership of individuals. It is crucial to fully understand the obligations and potential liabilities before entering into such an agreement. Franchisees should seek legal counsel to review the agreement and assess the potential risks to their personal assets. They should also ensure they have adequate insurance coverage to protect against potential liabilities arising from the operation of the franchise.