What is the process for a Chicken Guy franchisee to request a relocation of the Franchised Restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not relocate the Franchised Restaurant without our prior written consent, which may be withheld by us in our sole discretion after reviewing a variety of factors, including population density, the proximity of other Chicken Guy! Restaurants and other relevant demographic factors. If we approve a relocation of your Franchised Restaurant, we have the right to charge you for all reasonable expenses actually incurred in connection with consideration of the request, and we may condition our approval upon the payment of an agreed minimum royalty fee to Chicken Guy during the period in which the Franchised Restaurant is not in operation.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee needs prior written consent from Chicken Guy to relocate their Franchised Restaurant. This consent can be withheld at Chicken Guy's sole discretion. In deciding whether to approve a relocation, Chicken Guy will review factors such as population density, the proximity of other Chicken Guy restaurants, and other relevant demographic factors.
If Chicken Guy approves the relocation, the franchisee may be charged for all reasonable expenses actually incurred by Chicken Guy in considering the relocation request. Additionally, Chicken Guy may condition its approval on the franchisee's agreement to pay a minimum royalty fee during the period in which the Franchised Restaurant is not operating during the relocation.
This process is fairly standard in the franchise industry, as franchisors typically want to maintain control over the location of their branded outlets to protect brand consistency and market coverage. The potential costs associated with relocation, including Chicken Guy's expenses and minimum royalty fees during the downtime, are important considerations for a franchisee contemplating such a move. Franchisees should carefully weigh these costs against the potential benefits of a new location.