If Chicken Guy modifies the Manual, who is responsible for the cost of implementing the changes?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall accept and use or display in the Franchised Restaurant any such changes or modifications to the System as if they were a part of the System at the time this Agreement was executed, and Franchisee will make such expenditures as the changes or modifications in the System may reasonably require.
- **B.
Authorized Menu Items.** Within 30 days after receipt of written notice from Chicken Guy, Franchisee shall begin selling any newly authorized menu items and cease selling any menu items that are no longer authorized.
All food, beverage and merchandise items authorized for sale at the Franchised Restaurant shall be offered for sale under the specific name designated by Chicken Guy.
Chicken Guy, in its sole discretion, may restrict sales of menu items to certain time periods during the day.
If Franchisee has a suggestion for a new menu item or for a change to an authorized menu item or Franchisee desires to participate in a test market program, Franchisee shall provide Chicken Guy written notice prior to implementation.
Franchisee shall not add or modify any menu item or participate in a test market program without first having obtained Chicken Guy's prior written approval.
Franchisee shall purchase any additional equipment and smallwares as Chicken Guy deems reasonably necessary in connection with new menu items.
If Chicken Guy requires Franchisee to begin offering a new menu item which requires the purchase of additional equipment, a reasonable period of time, as determined in the sole discretion of Chicken Guy, shall be provided for the financing, purchase and installation of any such equipment before such new menu items must be offered for sale at the Franchised Restaurant.
- **C.
Renovation of Franchised Restaurant.** Extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants shall be required at Chicken Guy's request (but not more often than every 5 years).
Capital expenses necessary for the repair and maintenance of the Franchised Location are not subject to the time limitations described in the preceding sentence.
Within 60 days after receipt of Chicken Guy's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans for the required modernization.
These drawings and plans must be submitted to, and their use approved by, Chicken Guy prior to the commencement of work.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee is generally responsible for the costs associated with implementing changes or modifications to the system, including those detailed in the Manual. Chicken Guy retains the right to modify the Manual and the franchisee must comply with these changes. This includes purchasing new or upgraded software, system documentation, and other proprietary materials within 90 days of receiving notice from Chicken Guy. Franchisees are also responsible for purchasing any additional equipment and smallwares deemed reasonably necessary by Chicken Guy in connection with new menu items.
Chicken Guy also has the right to mandate that franchisees add memory, ports, or other accessories to their technology systems, or to purchase additional, new, or substitute software as technology evolves or system limits are reached. Franchisees must accept and implement changes or modifications to the system as if they were part of the system at the time the agreement was executed, and they will make such expenditures as the changes or modifications may reasonably require.
While Chicken Guy can request extensive structural changes, major remodeling, and renovations to modernize the Franchised Restaurant to match the system's image, these requests are limited to no more often than every 5 years. The franchisee is responsible for preparing and completing drawings and plans for the required modernization within 60 days of receiving written notice from Chicken Guy, and these plans must be approved by Chicken Guy before work commences. Overall, the franchisee bears the financial responsibility for keeping their restaurant up-to-date with Chicken Guy's evolving standards and system requirements.