What is the length of the renewal term offered to a Chicken Guy franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Renewal Term.
- (1) Upon the expiration of the Initial Term, Franchisee shall have an option to remain a franchisee at the Franchised Location for one renewal term of 10 years ("Renewal Term").
Franchisee shall give Chicken Guy written notice of whether or not it intends to exercise its renewal option not less than 8 months, nor more than 12 months, before the expiration of the Initial Term.
Franchisee's failure to provide Chicken Guy the required notice in a timely manner constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for one additional term. This renewal term extends the franchise agreement for 10 years, provided the franchisee meets certain conditions.
To be eligible for renewal, the Chicken Guy franchisee must provide written notice to Chicken Guy between 8 and 12 months before the expiration of the initial term, indicating their intent to renew. The franchisee must also not be in default of the franchise agreement or any other agreements with Chicken Guy. Furthermore, they need to ensure compliance with Chicken Guy's current training requirements and have the right to remain in possession of the franchised location.
Additionally, the franchisee is expected to renovate and modernize the restaurant to meet the current image standards of new Chicken Guy restaurants. They must also execute a general release and covenant not to sue Chicken Guy. Ultimately, Chicken Guy has the discretion to determine if the franchisee has operated the restaurant in accordance with the franchise agreement and system standards. Meeting these conditions ensures the franchisee can continue operating their Chicken Guy restaurant for another 10-year term.