What is the permitted use of a Chicken Guy franchised restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
by Chicken Guy.
Franchisee understands and acknowledges the importance of Chicken Guy's high and uniform standards of quality, operations and service and the necessity of developing and operating the Franchised Restaurant in strict conformity with this Agreement and the Chicken Guy! Operations Manual ("Manual").
Chicken Guy is willing to grant Franchisee a license to operate the Franchised Restaurant at the Franchised Location, subject to the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of Chicken Guy's grant to Franchisee of the right to operate a Franchised Restaurant at the Franchised Location during the term of this Agreement, as well as the mutual covenants, agreements and obligations set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. GRANT OF FRANCHISE
A. Grant.
- (1) Subject to the provisions of this Agreement, Chicken Guy hereby grants to Franchisee the right ("Franchise") to continuously operate the Franchised Restaurant at the Franchised Location and to use the Proprietary Marks in the operation of the Franchised Restaurant. If Chicken Guy has not approved the site for the Franchised Restaurant as of the date of this Agreement, the provisions of Section 3 will apply with regard to Franchisee's selection of a site for the Franchised Restaurant.
- (2) Franchisee may not operate the Franchised Restaurant at any site other than the Franchised Location and may not relocate the Franchised Restaurant without Chicken Guy's prior written consent, which may be withheld by Chicken Guy in its sole discretion. If Chicken Guy approves a relocation of the Franchised Restaurant, Franchisee shall pay a relocation fee to Chicken Guy in the amount of $10,000 and Chicken Guy may condition its approval upon the payment of an agreed minimum royalty to Chicken Guy during the period in which the Franchised Restaurant is not in operation.
- (3) Franchisee agrees that it will at all times faithfully, honestly and diligently perform its obligations under this Agreement, that it will continuously exert reasonable efforts to promote and enhance the business of the Franchised Restaurant and that it will n
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 40)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee is granted the right to continuously operate a Chicken Guy restaurant at an approved location and use the brand's proprietary marks in its operation. The franchisee cannot operate the restaurant at any site other than the approved location without prior written consent from Chicken Guy. Relocation of the restaurant requires a $10,000 relocation fee, and Chicken Guy may also require a minimum royalty payment during any period the restaurant is not operational due to relocation.
The franchisee must exert reasonable efforts to promote the restaurant and cannot engage in any conflicting business activities, except for operating other Chicken Guy restaurants or other restaurants franchised by Chicken Guy or its affiliates. Chicken Guy retains the right to require franchisees to participate in catering and/or delivery programs, mandating compliance with specific procedures, menu requirements, and approved suppliers.
These stipulations ensure that Chicken Guy maintains brand consistency and quality across all franchise locations. The restrictions on location and business activities protect the brand's image and prevent conflicts of interest. The potential requirement to participate in catering and delivery programs allows Chicken Guy to adapt to changing market demands and customer preferences, potentially increasing revenue streams for both the franchisor and franchisee. However, franchisees must be prepared to invest in necessary licenses, permits, and supplies to meet these requirements.