What provisions must be included in the lease agreement for a Chicken Guy Franchised Location?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Any lease that you sign for the Franchised Location must contain the provisions set forth in the Franchise Agreement and the Addendum to Lease form attached as Exhibit B to the Franchise Agreement. You may be required to pay the first and last months' lease payment upon signing your lease agreement. Lease agreements may include the following expenses: taxes, insurance, maintenance, fixed rent (with escalations), percentage rent and other charges related to the operation of the Franchised Restaurant. We cannot estimate the costs to purchase real estate for a Franchised Restaurant if you elect to purchase the site since these costs vary widely by geographic area.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–20)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, any lease signed for a franchised location must contain specific provisions outlined in both the Franchise Agreement and the Addendum to Lease form, which is attached as Exhibit B to the Franchise Agreement. While the document does not specify the exact nature of these provisions, it emphasizes their mandatory inclusion.
Furthermore, the FDD indicates that franchisees may be required to pay the first and last months' lease payments upon signing the lease agreement. The lease agreements may also include expenses such as taxes, insurance, maintenance, fixed rent (potentially with escalations), percentage rent, and other charges related to the operation of the Chicken Guy restaurant.
Given the variability in lease payments due to factors like property size, transaction type, and location, Chicken Guy does not provide an estimate for these payments. Prospective franchisees should carefully review the Franchise Agreement and Exhibit B to understand the required lease provisions and consult with legal and real estate professionals to negotiate favorable lease terms. Understanding these provisions is crucial, as they will directly impact the franchisee's operational costs and obligations.