Does Chicken Guy prohibit the use of advertising funds for the sale of franchises?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not use any of the advertising funds for advertising that is principally a solicitation for the sale of franchises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy will not use advertising funds for advertising that is principally a solicitation for the sale of franchises. This means that the money franchisees contribute to the Brand Fund or Regional Advertising Funds will be used to promote the Chicken Guy brand and its restaurants, not to recruit new franchisees.
This policy ensures that advertising funds are focused on increasing brand awareness and driving customer traffic to existing Chicken Guy locations, which directly benefits current franchisees. It prevents the advertising funds, which franchisees contribute to, from being diverted to franchise sales efforts that do not directly benefit the restaurants' operations.
Chicken Guy retains the right to modify or terminate advertising funds and establish new ones. They also have the right to incorporate any advertising fund and have a separate entity manage it. While Chicken Guy aims to enhance the brand's public recognition, franchisees should be aware that the franchisor is not obligated to make advertising expenditures equivalent or proportionate to each franchisee's contribution, nor are they required to spend any amount on advertising in the area where a franchisee's restaurant is located.