Does Chicken Guy have any obligation or liability to the franchisee as a result of changes or modifications to the Manual?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy may modify the Manual and Franchisee shall comply with all modified System standards. Franchisee agrees at all times to operate the Franchised Restaurant in strict conformity with the Manual; to maintain the Manual at the Franchised Restaurant; to not reproduce the Manual or any part of it; and to treat the Manual as confidential and proprietary, and; to disclose the contents of the Manual only to those employees of Franchisee who have a need to know. Franchisee shall keep its copy of the Manual current and up-to-date with all additions and deletions provided by or on behalf of Chicken Guy and shall purchase whatever equipment and related services (including, without limitation, computer system, Internet service, dedicated phone line, facsimile machine, etc.) as may be necessary to receive these communications. If a dispute relating to the contents of the Manual develops, the master copy maintained by Chicken Guy at its principal offices shall control.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the right to modify the System, including modifications to the Manual. The franchisee is obligated to comply with all modified System standards. The FDD excerpt does not explicitly state whether Chicken Guy has any obligation or liability to the franchisee as a result of these changes or modifications.
However, the franchisee must accept and use or display any changes or modifications to the System as if they were part of the System when the agreement was executed. The franchisee will also make expenditures as the changes or modifications in the System may reasonably require. This suggests that while Chicken Guy can make changes, the franchisee is responsible for the costs associated with implementing those changes.
While the FDD excerpt does not directly address Chicken Guy's obligations or liabilities regarding changes to the manual, it does emphasize the franchisee's responsibility to adapt to these changes and cover the associated costs. A prospective franchisee should seek clarification from Chicken Guy regarding any potential support or compensation in the event of significant modifications to the system or manual that require substantial investment.