How long is the Due Diligence Period after Chicken Guy's Purchase Notice?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of 30 days after the date of Chicken Guy's Purchase Notice ("Due Diligence Period"), Chicken Guy shall have the right to conduct such investigations as it deems necessary and appropriate to determine: (1) the ownership, condition and title of the Assets; (2) liens and encumbrances on the Assets; (3) environmental and hazardous substances at or upon the Franchised Location; and (4) the validity of contracts and liabilities inuring to Chicken Guy or affecting the Assets, whether contingent or otherwise.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, after Chicken Guy issues a Purchase Notice, they have a 30-day Due Diligence Period. During this period, Chicken Guy has the right to investigate aspects of the franchise to determine ownership, condition, and title of assets, any existing liens or encumbrances, environmental and hazardous substances at the location, and the validity of contracts and liabilities.
During this Due Diligence Period, Chicken Guy can examine the title to real estate assets, conduct lien searches, procure surveys and environmental assessments, and inspect fixed assets to ensure they are in satisfactory condition. Chicken Guy must notify the franchisee in writing of any objections found during these investigations before the end of the 30-day period.
If the franchisee cannot or chooses not to correct any issues found during the due diligence, Chicken Guy has the option to either accept the assets as they are or rescind their option to purchase the franchise. This 30-day period allows Chicken Guy to thoroughly assess the business before finalizing the purchase, protecting their investment and ensuring they are fully informed about the franchise's condition and potential liabilities.