How much notice does Chicken Guy give franchisees before terminating an advertising fund?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Chicken Guy reserves the right, in its sole discretion, to: (a) suspend contributions to and operations of each fund for one or more periods that it determines to be appropriate; (b) terminate any fund upon 30 days' written notice to Franchisee and establish, if Chicken Guy so elects, one or more new advertising funds; and (c) defer or waive, in whole or in part, upon the written request of any franchised or company restaurants, any advertising fees required by this Section if, in Chicken Guy's sole judgment, there has been demonstrated unique, objective circumstances justifying any such waiver or deferral. On termination of a fund, all monies in the fund shall be spent for advertising and/or promotional purposes. Chicken Guy has the right to reinstate any fund upon the same terms and conditions set forth in this Agreement upon 30 days' prior written notice to Franchisee. Chicken Guy, in its sole discretion as it deems appropriate in order to maximize media effectiveness, may transfer monies from the Brand Fund to any Regional Advertising Fund or from all Regional Advertising Funds to the Brand Fund.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy reserves the right to terminate any advertising fund. If Chicken Guy elects to terminate a fund, they will provide the franchisee with 30 days' written notice. Chicken Guy also has the option to establish one or more new advertising funds after the termination.
Upon termination of an advertising fund, all the remaining monies in the fund must be used for advertising and/or promotional purposes. Chicken Guy also retains the right to reinstate any fund under the same terms and conditions, provided they give the franchisee 30 days' prior written notice.
Chicken Guy also has the discretion to transfer monies between the Brand Fund and any Regional Advertising Fund to maximize media effectiveness. This means that Chicken Guy can shift funds from a national brand-building campaign to a regional effort, or vice versa, depending on where they believe the money will have the greatest impact. This flexibility allows Chicken Guy to respond to changing market conditions and optimize their advertising spend.