What provision must be included in the written partnership agreement if the Chicken Guy Developer is a partnership?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) If Developer is a corporation, a limited liability company or a partnership, Developer makes the following representations and warranties: (a) it is duly organized and validly existing under the laws of the state of its formation; (b) it is qualified to do business in the state or states in which the Development Territory is located; (c) execution of this Agreement and the development and operation of Franchised Restaurants is permitted by its governing documents; and (d) unless waived in writing by Chicken Guy, Developer's Articles of Incorporation, Articles of Organization or written partnership agreement shall at all times provide that the activities of Developer are limited exclusively to the development and operation of Chicken Guy! Restaurants and other restaurants operated by Developer that are franchised by Chicken Guy or its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if the Developer is a partnership, the written partnership agreement must stipulate that the activities of the Developer are limited exclusively to the development and operation of Chicken Guy restaurants and other restaurants franchised by Chicken Guy or its affiliates. This requirement can be waived in writing by Chicken Guy.
This provision ensures that the Developer's primary focus remains on the Chicken Guy franchise, preventing potential conflicts of interest or divided attention that could arise if the partnership engages in other business ventures. By limiting the scope of the partnership's activities, Chicken Guy aims to maintain brand consistency and operational standards across all franchised locations.
For a prospective Chicken Guy franchisee, this means that if they choose to form a partnership to become a Developer, the partnership agreement must explicitly state that their business activities are restricted to Chicken Guy restaurants and any other restaurant franchises they may have with Chicken Guy. This restriction is in place to protect Chicken Guy's interests and ensure the franchisee's dedication to the brand. It is important to note that Chicken Guy retains the right to waive this requirement in writing, offering some flexibility in specific cases. A prospective franchisee should discuss this provision with Chicken Guy to understand any potential exceptions or waivers that may be applicable.