Prior to construction, what documentation regarding the Franchised Location must a Chicken Guy franchisee provide to Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
st be obtained before proceeding. Chicken Guy shall approve or reject Plan changes within 10 business days after receipt. If Chicken Guy does not respond within that time period, Chicken Guy shall be deemed to have rejected approval of the Plans.
- (3) Franchisee is prohibited from beginning site preparation or construction prior to receiving written notification from Chicken Guy that Chicken Guy has approved the Plans. 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.
C. Construction.
- (1) Prior to the commencement of construction, Franchisee shall have provided Chicken Guy a copy of the fully-executed lease for the Franchised Location or, if Franchisee owns the Franchised Location, proof of Franchisee's ownership interest. Franchisee must obtain Chicken Guy's approval of and retain the services of a project manager as set forth in the Manual to manage the due diligence, design, bidding and construction processes for the Franchised Restaurant. Chicken Guy reserves the right to require Franchisee to use a general contractor approved by Chicken Guy as set forth in the Manual.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, prior to starting construction, a franchisee must provide Chicken Guy with specific documentation regarding the franchised location. This includes a copy of the fully-executed lease if the franchisee is leasing the location. Alternatively, if the franchisee owns the location, they must provide proof of their ownership interest to Chicken Guy.
In addition to providing the lease or proof of ownership, the Chicken Guy franchisee is required to submit proposed construction plans, specifications, and drawings, referred to as "Plans," for the Franchised Restaurant to Chicken Guy for approval. During the construction phase, the franchisee must also submit any revised or "as built" Plans if requested by Chicken Guy. Chicken Guy has 14 days to either approve or reject these Plans after receiving them, and this approval cannot be unreasonably withheld.
Furthermore, once Chicken Guy approves the Plans, the franchisee cannot make any substantial changes without obtaining prior approval from Chicken Guy. If any changes to the Plans are contemplated during construction, the franchisee must seek and receive Chicken Guy's approval before proceeding with those changes. Chicken Guy will then approve or reject these Plan changes within 10 business days of receipt. If Chicken Guy fails to respond within this timeframe, the changes are considered rejected. The franchisee is explicitly prohibited from starting any site preparation or construction work until they receive written notification from Chicken Guy confirming the approval of the Plans.