How many days after Chicken Guy's Purchase Notice does the closing need to take place?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
The Purchase Price shall be paid in cash or cash equivalents at the closing of the purchase ("Closing"), which shall take place no later than 60 days after the date of Chicken Guy's Purchase Notice.
From the date of Chicken Guy's Purchase Notice until Closing:
(1) Franchisee shall operate the Franchised Restaurant and maintain the Assets in the usual and ordinary course of business and maintain in full force all insurance policies required under this Agreement; and
(2) Chicken Guy shall have the right to appoint a manager, at Chicken Guy's expense, to control the day-to-day operations of the Franchised Restaurant, and Franchisee shall cooperate, and instruct its employees to cooperate, with the manager appointed by Chicken Guy.
Alternatively, Chicken Guy may require Franchisee to close the Franchised Restaurant during such time period without removing any Assets from the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if Chicken Guy exercises its option to purchase the assets of a franchise, the closing for the purchase must occur within a specific timeframe. The closing must take place no later than 60 days after the date of Chicken Guy's Purchase Notice. This notice is provided to the franchisee in writing when Chicken Guy decides to exercise its purchase option.
During the period between Chicken Guy's Purchase Notice and the actual closing, the franchisee is obligated to continue operating the franchised restaurant in the normal course of business. This includes maintaining the assets and keeping all required insurance policies active. Additionally, Chicken Guy has the right to appoint a manager, at its own expense, to oversee the day-to-day operations of the restaurant, and the franchisee is required to cooperate with this manager.
Alternatively, Chicken Guy has the option to require the franchisee to close the restaurant during this period, without removing any assets. This provides Chicken Guy with flexibility in managing the transition and preparing for the change in ownership. The 60-day period allows both parties to finalize the necessary arrangements for the transfer of ownership and ensure a smooth transition.