In Maryland, under what condition are Chicken Guy franchisee's initial fees and payments deferred?

According to Chicken Guy's 2025 Franchise Disclosure Document, the Maryland Securities Commissioner requires a financial assurance due to Chicken Guy's financial condition. As a result, all initial fees and payments owed by franchisees in Maryland are deferred. This deferral lasts until Chicken Guy completes its pre-opening obligations under the Franchise Agreement.

This condition means that prospective Chicken Guy franchisees in Maryland will not have to pay the initial franchise fee or any other initial payments until Chicken Guy has fulfilled its responsibilities in preparing the restaurant for opening. These pre-opening obligations typically include site selection assistance, providing training, and supplying the necessary plans and specifications for the restaurant build-out.

For developers in Maryland, all development fees and initial payments are deferred until the first Chicken Guy restaurant under the Development Agreement opens. This provides a significant benefit to franchisees and developers in Maryland, as it reduces their upfront financial burden and aligns Chicken Guy's interests with the successful opening of the franchise. Franchisees should confirm with Chicken Guy what specific actions constitute completion of pre-opening obligations to understand the exact trigger for when fees become due.