What are the potential consequences if the construction of the Chicken Guy restaurant is not in substantial compliance with the approved plans?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
All construction must be in accordance with Plans approved by Chicken Guy and must comply in all respects with applicable laws, ordinances and local rules and regulations.
The Franchised Restaurant may not open if construction has not been performed in substantial compliance with Plans approved by Chicken Guy, and this Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time.
Chicken Guy may, in its sole discretion, furnish guidance to Franchisee in developing the Franchised Restaurant and may periodically inspect the premises during its development.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, failure to substantially comply with approved construction plans can lead to significant repercussions. Specifically, the franchise restaurant may not be allowed to open if the construction deviates substantially from the plans approved by Chicken Guy. Furthermore, the Franchise Agreement itself may be terminated if the non-compliance is not resolved within a commercially reasonable timeframe. This underscores the importance of adhering strictly to the approved plans and specifications during the construction phase.
Chicken Guy retains the right to furnish guidance during the restaurant's development and may conduct periodic inspections to ensure compliance. Franchisees are required to use only registered architects, engineers, and licensed contractors, and must submit construction plans for approval. No substantial changes can be made to the plans without prior approval from Chicken Guy. This process highlights the franchisor's commitment to maintaining brand standards and uniformity across all franchise locations.
To ensure compliance, franchisees must cooperate fully with Chicken Guy and its designees, providing samples of construction materials and access to the construction site for inspections. Franchisees may also be required to submit regular reports with photographs showing the progress of construction. These measures are designed to identify and address any deviations from the approved plans early in the construction process, minimizing the risk of non-compliance and potential penalties. Franchisees should maintain open communication with Chicken Guy throughout the construction phase to avoid any misunderstandings or delays.
While Chicken Guy has the right to approve plans, architects, project managers, and general contractors, and to inspect the construction work, it assumes no liability or obligation with respect to the location, design, or construction of the restaurant. This limitation of liability means that the franchisee bears the ultimate responsibility for ensuring that the construction meets all requirements and complies with applicable laws and regulations. Franchisees should therefore exercise due diligence in selecting qualified professionals and overseeing the construction process to protect their investment and avoid potential disputes.