What information must a Chicken Guy franchisee provide to Chicken Guy when proposing a Transfer?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Transfer Considerations. Franchisee shall advise Chicken Guy in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, and submit a copy of all contracts and all other agreements or proposals, and all other information requested by Chicken Guy, relating to the proposed Transfer. If Chicken Guy does not exercise its right of first refusal, the decision as to whether or not to approve a proposed Transfer shall be made by Chicken Guy in its reasonable business discretion and shall include numerous factors deemed relevant by Chicken Guy. These factors may include, but will not be limited to, the following:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee must provide specific information to Chicken Guy when proposing a transfer of their franchise. The franchisee must advise Chicken Guy in writing of the proposed transfer and submit a franchise application for the proposed transferee. Additionally, the franchisee must submit a copy of all contracts, agreements, proposals, and any other information requested by Chicken Guy relating to the proposed transfer.
Chicken Guy will then evaluate the proposed transfer, considering numerous factors deemed relevant by them. These factors may include the transferee's experience in high-quality restaurant operations, their managerial and operational standards, character, business reputation, credit rating, management culture, and financial resources. Chicken Guy also assesses whether the sales price jeopardizes the transferee's ability to operate the franchise successfully and meet financial obligations.
Furthermore, the franchisee must ensure that all accrued monetary obligations to Chicken Guy and its affiliates are satisfied, along with other outstanding obligations related to the franchised restaurant. Chicken Guy may require a reasonable sum of money to be placed in escrow to ensure these obligations are met. The franchisee must also not be in material default of any agreement with Chicken Guy or its affiliates and must secure a general release and covenant not to sue from the franchisee, all individuals who executed the agreement, and all guarantors. Unless waived by Chicken Guy, the transferee and designated employees must complete the required training programs.