factual

Can the Operating Principal and Development Principal positions for a Chicken Guy franchise be held by the same person?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

You are not obligated to participate personally in the direct operation of the Franchised Restaurant; however, you must designate a qualified individual to serve as the "Operating Principal" of your Franchised Restaurant. If you sign a Development Agreement, you must designate a qualified individual to serve as your "Development Principal." If qualified, you may fill either or both of these positions; however, we may require that these positions be held by different persons.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, it is possible for one person to hold both the Operating Principal and Development Principal positions, but Chicken Guy may require that these positions be held by different people. The Operating Principal is responsible for overseeing the day-to-day operations of the franchised restaurant, while the Development Principal is responsible for supervising the development of multiple franchised restaurants under a Development Agreement.

If a franchisee signs a Development Agreement, they must designate a qualified individual to serve as the Development Principal. The franchisee can fill either or both of these positions if qualified. Both roles require substantial time and effort. The Operating Principal must devote substantial time to the supervision and conduct of the franchised restaurant, while the Development Principal must devote substantial time to supervising the development of franchised restaurants under the Development Agreement.

Both the Operating Principal and the Development Principal must be acceptable to both the franchisee and Chicken Guy. They must also successfully complete the required training programs. The Operating Principal must complete the initial manager training program, and the Development Principal must complete development training. Both positions also require at least five years of full profit and loss responsibility and accountability, with a history of operating at least as many restaurants as the franchisee has agreed to develop under the Development Agreement.

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.