How many renewal terms are available for a Chicken Guy franchise, and what are their durations?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the | Section 2 | Ten years from the date that the Franchised Restaurant |
| franchise term | opens. | |
| b. Renewal or extension of the term | Section 2.B. and NT Location Addendum Section 3 | You can renew for one renewal term of ten years. If you sign a Nontraditional Location Addendum to the Franchise Agreement, you can renew for two five-year renewal terms. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the standard franchise agreement allows for one renewal term of ten years. However, if a franchisee signs a Nontraditional Location Addendum to the Franchise Agreement, they are eligible for two renewal terms, each lasting five years.
For a prospective Chicken Guy franchisee, this means the initial franchise term is ten years, with the possibility of extending the agreement. The specific renewal options depend on whether the location is considered traditional or nontraditional. A traditional location offers one 10-year renewal, while a nontraditional location offers two 5-year renewals.
It is important for potential franchisees to understand the implications of signing a Nontraditional Location Addendum, as it affects the length and number of renewal terms available. Franchisees should carefully consider their long-term plans and the potential benefits and drawbacks of each option before making a decision. This information is crucial for planning the future of their Chicken Guy franchise and ensuring alignment with their business goals.