What is the limitation of Chicken Guy's liability regarding the design or construction of the Franchised Restaurant?

According to the 2025 Chicken Guy FDD, while Chicken Guy retains the right to recommend and approve the restaurant's plans, architects, project managers, and general contractors, as well as inspect the construction work, they assume no liability or obligation regarding the franchised location. This also applies to the design or construction of the restaurant, including furnishings, fixtures, and equipment. Chicken Guy's rights are solely for ensuring compliance with the franchise agreement terms.

This means that as a franchisee, you are ultimately responsible for any issues arising from the design or construction of your Chicken Guy restaurant. Even though Chicken Guy has approval rights and may conduct inspections, their involvement does not translate into liability for construction defects, design flaws, or any other related problems. This is a common arrangement in franchising, where the franchisee typically bears the responsibility for the build-out and operation of their location.

Prospective franchisees should carefully consider this allocation of risk and ensure they have adequate insurance and qualified professionals (architects, contractors, etc.) to manage the construction process. It would be prudent to discuss this limitation of liability with Chicken Guy during the due diligence phase to fully understand the scope of your responsibilities and potential risks.