Does the landlord have to consent to the Chicken Guy franchisee's use of proprietary signs and marks?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. The landlord consents to Franchisee's use of the proprietary signs, distinctive exterior and interior designs and layouts and the Proprietary Marks prescribed by Chicken Guy, and upon expiration or the earlier termination of the lease, consents to permit Franchisee, at Franchisee's expense, to remove all such items and other trade fixtures, so long as Franchisee makes repairs to the building caused by such removal.
- F. The landlord agrees not to amend or otherwise modify the lease in any manner that would affect any of the foregoing requirements without Chicken Guy's prior written consent, which consent shall not be unreasonably withheld.
- H. The landlord agrees to consent to Franchisee's collaterally assigning the lease to Chicken Guy or its designee, granting Chicken Guy the option, but not the obligation, to assume the lease from the date Chicken Guy takes possession of the leased premises, without payment of any assignment fee or similar charge or increase in any rentals payable to the landlord.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, the landlord's consent is required for the franchisee to use proprietary signs and marks. The landlord must consent to the franchisee's use of proprietary signs, distinctive exterior and interior designs and layouts, and the proprietary marks prescribed by Chicken Guy. This consent extends to allowing the franchisee to remove these items and other trade fixtures at the franchisee's expense upon the lease's expiration or termination, provided the franchisee repairs any building damage caused by the removal.
This requirement ensures that the Chicken Guy restaurant maintains its brand identity and adheres to the franchisor's standards. It also protects the landlord by ensuring that the property can be restored to its original condition, or modified appropriately, if the franchise agreement ends. The landlord also agrees not to amend or modify the lease in any manner that would affect any of the requirements without Chicken Guy's prior written consent, which consent shall not be unreasonably withheld.
For a prospective Chicken Guy franchisee, this means that securing landlord consent is a critical step in establishing their restaurant. Franchisees should ensure that the lease agreement includes provisions that explicitly grant this consent and outline the terms for removing fixtures and restoring the property. This also means that the landlord agrees to consent to Franchisee's collaterally assigning the lease to Chicken Guy or its designee, granting Chicken Guy the option, but not the obligation, to assume the lease from the date Chicken Guy takes possession of the leased premises, without payment of any assignment fee or similar charge or increase in any rentals payable to the landlord.
Furthermore, the landlord's agreement to provide Chicken Guy with copies of all lease-related amendments, assignments, and default notices ensures that Chicken Guy is informed of any issues that could affect the franchise's operation. Chicken Guy also has the right to enter the leased premises to make modifications or alterations necessary to protect the System and the Proprietary Marks, to cure any default under the lease, and to charge Franchisee for these costs.