Is Chicken Guy liable for delays or loss occasioned by its inability to complete its inspection of the Chicken Guy restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy shall not be liable for delays or loss occasioned by its inability to complete its investigation and to make a determination within this period.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy is not liable for delays or losses if they cannot complete their investigation and make a determination regarding the final inspection of the franchised restaurant.
Before opening a Chicken Guy restaurant, the franchisee must notify Chicken Guy in writing at least 30 days before the expected completion of construction or renovation and the issuance of a certificate of occupancy. Chicken Guy reserves the right to conduct a final inspection to ensure compliance with the franchise agreement.
This clause protects Chicken Guy from potential claims by franchisees who might experience delays or incur losses due to Chicken Guy's inability to complete the inspection within a specific timeframe. It is important for prospective franchisees to factor in potential delays related to the inspection process when planning their restaurant opening and to have contingency plans in place to mitigate potential losses.