What is the length of the initial franchise term for a Chicken Guy restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the | Section 2 | Ten years from the date that the Franchised Restaurant |
| franchise term | opens. | |
| b. Renewal or extension of the term | Section 2.B. and NT Location Addendum Section 3 | You can renew for one renewal term of ten years. If you sign a Nontraditional Location Addendum to the Franchise Agreement, you can renew for two five-year renewal terms. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the initial franchise term is ten years. Specifically, the term begins on the date that the franchised restaurant opens for business.
Chicken Guy also offers an option to renew the franchise agreement. A franchisee can renew for one additional term of ten years, allowing for a potential total franchise term of twenty years.
However, if a franchisee signs a Nontraditional Location Addendum to the Franchise Agreement, they have the option to renew for two five-year renewal terms. This means that franchisees operating in nontraditional locations could potentially extend their franchise term beyond the initial ten years by an additional ten years, for a total of twenty years.