factual

What kind of site selection guidelines does Chicken Guy provide before opening a franchised restaurant?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

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Our Obligations Prior To Opening

Before you open your Franchised Restaurant, we will:

    1. Provide our site selection guidelines and, as you may request, a reasonable amount of consultation with respect to the guidelines. We will also provide such on-site evaluation as we may deem advisable as part of our evaluation of your request for site approval. (Development Agreement, § 5.B.; Franchise Agreement, § 3.B.) For restaurants that you develop in the future under the Development Agreement, we will apply our then-current site selection criteria to your site applications.
    1. We will advise you in writing whether we have approved a proposed site within 15 days after we receive your Real Estate Site Application, a business plan and any additional information that we may reasonably require. If we do not respond within 15 days, we will be deemed to have denied approval of the site. (Development Agreement, § 5.E.; Franchise Agreement, § 3.E.)
    1. Provide you with any development training we require. (Development Agreement, § 5.H.; Franchise Agreement, § 5.A.)
    1. Provide written specifications for fixtures, furnishings, equipment, signs and opening inventory and provide you with a list of designated and approved suppliers for these items. (Franchise Agreement, § 5.D.) Neither we nor any of our affiliates are currently designated or approved suppliers of any of these items.
    1. Furnish you with plans and specifications for a Chicken Guy! Restaurant (or Nontraditional Restaurant if applicable), including requirements for dimensions, design image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront and color scheme. We may require you to engage the services of an architect, project manager and/or general contractor that have been approved by us. It will be your responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location, subject to our approval,

and you must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. You must use only registered architects, registered engineers and professional and licensed contractors. We will provide you with written approval or disapproval of your construction plans for the proposed Franchised Restaurant and notify you within 14 days after we receive the plans whether we approve or disapprove of the plans. (Franchise Agreement, § 5.B.)

    1. Provide you with a final inspection of the Franchised Restaurant, if we choose to conduct one, and provide you with express written authorization to open the Franchised Restaurant if you have complied with all conditions. (Franchise Agreement, § 5.H.)
    1. Loan you a copy of our confidential and proprietary Manual, which contains information and knowledge that is unique, necessary and material to the System, including mandatory specifications and standards relating to the construction, management and operation of Chicken Guy! Restaurants. The Manual remains our property. We may revise the contents of the Manual, and you agree to comply with each new or changed section. (Development Agreement, § 7; Franchise Agreement, § 10). The Table of Contents of the Manual as of the date of this disclosure document is attached as Exhibit G. As of that date, the Manual contained a total of 112 pages.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, before a franchised restaurant opens, Chicken Guy will provide site selection guidelines and consultation regarding these guidelines, including on-site evaluation. The franchisee must submit a Real Estate Site Application with information that Chicken Guy requires, believing that the site conforms to Chicken Guy's site selection criteria. These criteria include demographic characteristics, traffic patterns, parking, the character of the neighborhood, competition, proximity to other businesses (including those affiliated with Chicken Guy), the nature of nearby businesses, commercial characteristics (like purchase price, rental obligations, and lease terms), and the site's physical characteristics and layout. Chicken Guy may also use third-party real estate analysts to evaluate potential sites. The franchisee must also provide financial statements, business plans, and other information about the development and operation of the restaurant, including investment and financing plans.

Chicken Guy's Real Estate Review Committee will evaluate the proposed site using the criteria mentioned above. Within 15 days of receiving the Real Estate Site Application, business plan, and any additional required information, Chicken Guy will inform the franchisee in writing whether the site has been approved. Failure to respond within this timeframe is considered a denial. Approvals may be subject to conditions at Chicken Guy's discretion. If the franchisee intends to lease or sublease the location, they must provide a copy of the fully-executed lease or sublease (with a term including renewals that covers at least the initial term of the Franchise Agreement) within 90 days of site approval, or within 30 days for a Nontraditional Restaurant after signing the Franchise Agreement and the Nontraditional Location Addendum.

These guidelines are typical in the franchise industry, as franchisors want to ensure that the location of a new franchise is likely to be successful. Franchisees should carefully consider these site selection criteria and work closely with Chicken Guy to find a location that meets their requirements. The franchisee is responsible for ensuring that all construction plans comply with applicable ordinances, building codes, permit requirements, and lease restrictions, and must use registered architects, engineers, and licensed contractors. Chicken Guy will provide written approval or disapproval of construction plans within 14 days of receiving them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.