If a Chicken Guy franchisee's governing documents are modified, what is the franchisee's obligation to Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a corporation, copies of Franchisee's Articles of Incorporation, bylaws, other governing documents and any amendments, including the resolution of the Board of Directors authorizing entry into and performance of this Agreement, and all shareholder agreements, including buy/sell agreements, have been furnished to Chicken Guy.
If Franchisee is a limited liability company, copies of Franchisee's Articles of Organization, Management Agreement, other governing documents and any amendments, including the resolution of the Managers authorizing entry into and performance of this Agreement, and all agreements, including buy/sell agreements, among the members have been furnished to Chicken Guy.
If Franchisee is a partnership, copies of Franchisee's written partnership agreement, other governing documents and any amendments, as well as all agreements, including buy/sell agreements, among the partners have been furnished to Chicken Guy, in addition to evidence of consent or approval of the entry into and performance of this Agreement by the requisite number or percentage of partners, if that approval or consent is required by Franchisee's written partnership agreement.
When any of these governing documents are modified or changed, Franchisee promptly shall provide copies to Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if a franchisee's governing documents are modified or changed, the franchisee must promptly provide copies of the modified documents to Chicken Guy. This requirement ensures that Chicken Guy is kept informed of any changes in the ownership, structure, or management of the franchisee's business entity. These documents include Articles of Incorporation, bylaws, management agreements, partnership agreements, and any amendments or resolutions related to the franchise agreement.
This obligation applies to franchisees that are corporations, limited liability companies (LLCs), or partnerships. The purpose is to allow Chicken Guy to monitor and assess any potential impact these changes might have on the operation and management of the franchise. For instance, changes in ownership or management could affect the franchisee's ability to adhere to the franchise agreement's standards and requirements.
By requiring franchisees to submit these documents promptly, Chicken Guy maintains oversight and can address any concerns arising from the modifications. This also allows Chicken Guy to ensure that the franchisee continues to meet the brand's standards and legal obligations, protecting the integrity and consistency of the Chicken Guy brand. This is a fairly standard practice in franchising, as franchisors typically want to stay informed about changes to the franchisee's business structure.