Does Chicken Guy make any representations about the past financial performance of franchised outlets?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy's approval of one or more sites is not a representation or a promise by Chicken Guy that a Chicken Guy!
Restaurant at the Authorized Site will achieve a certain sales volume or a certain level of profitability.
Similarly, Chicken Guy's approval of one or more sites and its rejection of other sites is not a representation or a promise that an Authorized Site will have a higher sales volume or be more profitable than a site which Chicken Guy did not approve.
Chicken Guy assumes no liability or responsibility for: (a) evaluation of an Authorized Site's soil for hazardous substances; (b) inspection of any structure on the Authorized Site for asbestos or other toxic or hazardous materials; (c) compliance with the Americans with Disabilities Act ("ADA"); or (d) compliance with any other applicable law.
It is Developer's sole responsibility to obtain satisfactory evidence and/or assurances that the Authorized Site (and any structures thereon) is free from environmental contamination and in compliance with the requirements of the ADA.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–47)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy does not make any representations or guarantees regarding potential sales or profitability of a franchised restaurant. Specifically, Chicken Guy states that its approval of a site for a franchised restaurant is not a promise that the restaurant will achieve a certain sales volume or level of profitability.
Chicken Guy emphasizes that it is the potential franchisee's responsibility to evaluate the suitability of a site, including environmental and legal compliance. The franchisor assumes no liability for these factors. This means that prospective franchisees must conduct their own due diligence and not rely on any implied promises from Chicken Guy regarding the financial performance of a location.
This disclaimer is a common practice in franchising. It underscores the importance of independent market research and financial forecasting by the franchisee. A prospective Chicken Guy franchisee should carefully consider this lack of representation and conduct thorough due diligence before investing in a franchise.