How long does Chicken Guy have to advise a franchisee of their renewal status after receiving written notice?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Within 4 months after Chicken Guy's receipt of Franchisee's written notice of its desire to renew, Chicken Guy shall advise Franchisee whether or not Franchisee is entitled to remain a franchisee for the Renewal Term.
If Chicken Guy intends to permit Franchisee to remain a franchisee for the Renewal Term, Chicken Guy's notice will contain preliminary information regarding actions Franchisee must take to satisfy Sections 2.B.(2)(b) and (c).
If Chicken Guy does not intend to permit Franchisee to remain a franchisee for the Renewal Term, Chicken Guy's notice shall specify the reasons for non-renewal.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has a period of 4 months to inform a franchisee about their renewal status after receiving written notice of the franchisee's desire to renew. This notification will state whether or not the franchisee is eligible to continue as a franchisee for the renewal term.
If Chicken Guy intends to allow the franchisee to renew, the notice will include preliminary information about the actions the franchisee needs to take to meet specific requirements, such as renovations and training. Conversely, if Chicken Guy does not intend to permit the franchisee to renew, the notice must specify the reasons for non-renewal.
This process is important for franchisees as it sets the timeline for knowing their future with Chicken Guy and what steps they need to take to secure a renewal. Franchisees should carefully track the dates for providing their renewal notice and Chicken Guy's response to ensure they meet all deadlines and understand the requirements for renewal.