What is the possible size range of a Chicken Guy Development Territory?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign a Development Agreement, you will receive a Development Territory, which will be mutually agreed upon by us and you, taking into consideration the density of the area and the number of Franchised Restaurants you agree to develop. A description of the Development Territory will be included in the Development Agreement. The perimeters of the Development Territory may be described by specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks or other similar boundary descriptions, and the size may range from a portion of a metropolitan area to a county or a state in less densely populated areas. For each Chicken Guy! Restaurant you will develop under the Development Agreement, you must select a site which we approve, based on our then-current site selection criteria we establish from time to time.
The System (including the products sold under the Proprietary Marks) has been developed, and is designed, to function effectively in a wide variety of retail environments, many of which are not practically available to you. Accordingly, under the Development Agreement, we reserve to ourselves the right to: (1) operate, and license others to operate, restaurants identified in whole or in part by the name and mark "Chicken Guy!" in the Development Territory at Nontraditional Locations; (2) award national or regional licenses to third parties to sell products under the name and mark "Chicken Guy!" in foodservice facilities primarily identified by the third party's trademark; (3) develop and operate, and license others to develop and operate, restaurants other than restaurants identified in whole or in part by the name and mark "Chicken Guy!" in the Development Territory; (4) merchandise and distribute products identified by some or all of the Proprietary Marks in the Development Territory through any other method or channel of distribution; and (5) sell and distribute products identified by some or all of the Proprietary Marks in the Development Territory to restaurants other than restaurants identified in whole or in part by the name and mark "Chicken Guy!," provided those restaurants are not licensed to use the Proprietary Marks in connection with their retail sales.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the size of a Development Territory is determined through mutual agreement between Chicken Guy and the franchisee. The size of the territory takes into account the density of the area and the number of Chicken Guy restaurants the franchisee commits to developing.
The document specifies that a Chicken Guy Development Territory can range from a portion of a metropolitan area to a county or even a state in less densely populated regions. The boundaries of the territory may be defined using specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks, or other similar geographical markers.
It is important to note that even with a Development Agreement, Chicken Guy retains certain rights within the Development Territory. These rights include operating or licensing others to operate Chicken Guy restaurants in nontraditional locations, awarding national or regional licenses to third parties, developing other restaurant concepts, and distributing Chicken Guy products through other channels. This means that while a franchisee may have a defined Development Territory, they may still face competition from Chicken Guy itself or other licensed entities within that territory.