What is the Landlord obligated to do regarding the Chicken Guy franchisee's exclusivity rights?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Exclusive Use: Landlord agrees that Tenant shall have the exclusive right throughout the Term of the Lease to engage in the sale of counter service chicken menu items in the Leased Premises. Tenant agrees that other tenants in the Leased Premises may have chicken on their menus so long as chicken is incidental part of any such other tenant's food sales (less than 20% of gross sales). Landlord agrees that it shall advise other tenants, and any future landlord, of Tenant's exclusivity rights as set forth herein and shall not allow any other party to violate the terms of this exclusivity provision. If a violation occurs, Tenant, in addition to any other rights it may have in law or equity shall have the right to terminate this Lease upon thirty (30) days prior written notice.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the landlord has specific obligations regarding the franchisee's exclusive rights to sell counter service chicken menu items. The landlord must inform current and future tenants of the Chicken Guy franchisee's exclusivity rights during the lease term. The landlord is prohibited from allowing other parties to violate the exclusivity terms granted to the Chicken Guy franchisee.
This exclusive use provision means that while other tenants in the leased premises can have chicken on their menus, it must be an incidental part of their food sales, constituting less than 20% of their gross sales. This protects the Chicken Guy franchisee from direct competition within the same property, ensuring that their primary menu focus remains unique.
If a violation of the exclusivity agreement occurs, the Chicken Guy franchisee has the right to terminate the lease with a 30-day prior written notice, in addition to any other legal or equitable rights they may possess. This clause provides a significant recourse for the franchisee if the landlord fails to uphold the exclusivity agreement, allowing them to exit the lease if their business is negatively impacted by a competing vendor.