Prior to starting construction, what documentation regarding the Franchised Location must a Chicken Guy franchisee provide?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
uy's approval must first 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. As used in this Agreement, construction shall have commenced only after Franchisee has obtained all required permits and: (a) with respect to a free-standing Restaurant, Franchisee has begun the installation of building footings with the intent to maintain continuous construction thereafter; or (b) with respect to a non-free-standing Restaurant or a Restaurant being converted from a prior use, Franchisee has begun the installation of sub-floor plumbing with the intent to maintain continuous construction thereafter.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, before starting construction on a franchised location, a franchisee must provide specific documentation to Chicken Guy. This includes a copy of the fully-executed lease for the location. If the franchisee owns the location, they must provide proof of their ownership interest.
In addition to documentation regarding the location itself, the 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 construction, 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, and this approval cannot be unreasonably withheld.
It is critical for a prospective Chicken Guy franchisee to understand that site preparation or construction cannot begin until written notification is received from Chicken Guy confirming the approval of the submitted Plans. Furthermore, all construction must strictly adhere to the approved Plans and comply with all applicable laws, ordinances, and local regulations. Failure to comply with these construction requirements can prevent the restaurant from opening and may lead to termination of the franchise agreement if the non-compliance is not resolved within a reasonable timeframe.