factual

By the Opening Deadline, what permits and licenses must a Chicken Guy franchisee obtain and maintain?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (3) Franchisee agrees, at its sole expense, to do, or cause to be done, the following, by the Opening Deadline:

  • (a) Obtain and maintain all required building, utility, sign, health, sanitation, business and other permits and licenses applicable to the Franchised Restaurant.

  • (5) Franchisee, to the extent approval for the sale of alcoholic beverages has been obtained from Chicken Guy, has obtained a liquor license authorizing the sale of alcoholic beverages at the Franchised Restaurant.

  • (6) Franchisee has obtained a certificate of occupancy and any other required health, safety or fire department certificates.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, by the Opening Deadline, franchisees must obtain and maintain all required building, utility, sign, health, sanitation, business, and other permits and licenses applicable to the franchised restaurant. Additionally, if the franchisee intends to sell alcoholic beverages and Chicken Guy approves, the franchisee must obtain a liquor license authorizing the sale of alcoholic beverages at the restaurant. Franchisees must also obtain a certificate of occupancy and any other required health, safety, or fire department certificates.

Securing these permits and licenses is the franchisee's sole responsibility and expense. Failure to obtain and maintain these can prevent the restaurant from opening or lead to termination of the franchise agreement. Chicken Guy may conditionally authorize a franchisee to open even if not all terms of the agreement are met, as long as the franchisee agrees to fulfill all remaining terms by the Opening Deadline.

It is standard practice in the franchise industry for franchisees to handle all local permitting and licensing. This ensures compliance with local laws and regulations, which can vary significantly. Franchisees should consult with local authorities and experienced professionals to ensure they meet all requirements before the Opening Deadline. The FDD also states that the franchisee must operate the franchised restaurant in full compliance with all applicable laws, ordinances, and regulations.

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.