factual

What obligations does Chicken Guy have to a franchisee before the franchisee opens their Franchised Restaurant?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

Before you open your Franchised Restaurant, we will:

    1. Provide our site selection guidelines and, as you may request, a reasonable amount of consultation with respect to the guidelines. We will also provide such on-site evaluation as we may deem advisable as part of our evaluation of your request for site approval. (Development Agreement, § 5.B.; Franchise Agreement, § 3.B.) For restaurants that you develop in the future under the Development Agreement, we will apply our then-current site selection criteria to your site applications.
    1. We will advise you in writing whether we have approved a proposed site within 15 days after we receive your Real Estate Site Application, a business plan and any additional information that we may reasonably require. If we do not respond within 15 days, we will be deemed to have denied approval of the site. (Development Agreement, § 5.E.; Franchise Agreement, § 3.E.)
    1. Provide you with any development training we require. (Development Agreement, § 5.H.; Franchise Agreement, § 5.A.)
    1. Provide written specifications for fixtures, furnishings, equipment, signs and opening inventory and provide you with a list of designated and approved suppliers for these items. (Franchise Agreement, § 5.D.) Neither we nor any of our affiliates are currently designated or approved suppliers of any of these items.
    1. Furnish you with plans and specifications for a Chicken Guy! Restaurant (or Nontraditional Restaurant if applicable), including requirements for dimensions, design image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront and color scheme. We may require you to engage the services of an architect, project manager and/or general contractor that have been approved by us. It will be your responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location, subject to our approval, and you must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. You must use only registered architects, registered engineers and professional and licensed contractors. We will provide you with written approval or disapproval of your construction plans for the proposed Franchised Restaurant and notify you within 14 days after we receive the plans whether we approve or disapprove of the plans. (Franchise Agreement, § 5.B.)
    1. Provide you with a final inspection of the Franchised Restaurant, if we choose to conduct one, and provide you with express written authorization to open the Franchised Restaurant if you have complied with all conditions. (Franchise Agreement, § 5.H.)
    1. Loan you a copy of our confidential and proprietary Manual, which contains information and knowledge that is unique, necessary and material to the System, including mandatory specifications and standards relating to the construction, management and operation of Chicken Guy! Restaurants. The Manual remains our property. We may revise the contents of the Manual, and you agree to comply with each new or changed section. (Development Agreement, § 7; Franchise Agreement, § 10). The Table of Contents of the Manual as of the date of this disclosure document is attached as Exhibit G. As of that date, the Manual contained a total of 112 pages.
    1. Provide you with consultation and advice with regard to the development and operation of the Franchised Restaurant, building layout, furnishings, fixtures and equipment, plans and specifications, employee recruiting, selection and training, purchasing and inventory control and such other matters as we deem appropriate. (Franchise Agreement, § 13.A.)
    1. Provide an initial manager training program to you, your Operating Principal (as defined in Item 15), your restaurant manager and any other person that we designate. The details of the initial manager training program are described later in this Item 11. (Franchise Agreement, § 12)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, before a franchisee opens their restaurant, Chicken Guy has several obligations. Chicken Guy will provide site selection guidelines and consultation, including on-site evaluation if deemed advisable. Chicken Guy must also advise the franchisee in writing whether a proposed site is approved within 15 days of receiving the Real Estate Site Application, business plan, and any additional required information; failure to respond within 15 days constitutes denial of the site. Chicken Guy will provide any required development training.

Chicken Guy is also obligated to provide written specifications for fixtures, furnishings, equipment, signs, and opening inventory, along with a list of designated and approved suppliers. It will furnish plans and specifications for a Chicken Guy restaurant, including requirements for dimensions, design image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront, and color scheme. The franchisee may be required to engage approved architects, project managers, or general contractors, and is responsible for preparing construction plans that comply with applicable ordinances, building codes, permit requirements, and lease restrictions, subject to Chicken Guy's approval. Chicken Guy must provide written approval or disapproval of construction plans within 14 days of receiving them.

Chicken Guy may conduct a final inspection of the restaurant and provide written authorization to open if all conditions are met. It will loan the franchisee a copy of its confidential and proprietary Manual, which contains essential information for operating a Chicken Guy restaurant. Chicken Guy will provide consultation and advice on various aspects of the restaurant's development and operation, including building layout, furnishings, equipment, employee recruiting, purchasing, and inventory control. Furthermore, Chicken Guy will provide an initial manager training program to the franchisee, their Operating Principal, restaurant manager, and any other designated personnel, with certification required for operation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.