What is 'Chicken Guy's Purchase Notice'?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- **E.
Exercise of Option.** Within 10 days after the Purchase Price has been determined, Chicken Guy may exercise its option to purchase the Assets by so notifying Franchisee in writing ("Chicken Guy's Purchase Notice").
The Purchase Price shall be paid in cash or cash equivalents at the closing of the purchase ("Closing"), which shall take place no later than 60 days after the date of Chicken Guy's Purchase Notice.
From the date of Chicken Guy's Purchase Notice until Closing:
(1) Franchisee shall operate the Franchised Restaurant and maintain the Assets in the usual and ordinary course of business and maintain in full force all insurance policies required under this Agreement; and
(2) Chicken Guy shall have the right to appoint a manager, at Chicken Guy's expense, to control the day-to-day operations of the Franchised Restaurant, and Franchisee shall cooperate, and instruct its employees to cooperate, with the manager appointed by Chicken Guy.
Alternatively, Chicken Guy may require Franchisee to close the Franchised Restaurant during such time period without removing any Assets from the Franchised Restaurant.
- **F.
Due Diligence Period.** For a period of 30 days after the date of Chicken Guy's Purchase Notice ("Due Diligence Period"), Chicken Guy shall have the right to conduct such investigations as it deems necessary and appropriate to determine: (1) the ownership, condition and title of the Assets; (2) liens and encumbrances on the Assets; (3) environmental and hazardous substances at or upon the Franchised Location; and (4) the validity of contracts and liabilities inuring to Chicken Guy or affecting the Assets, whether contingent or otherwise.
Franchisee will afford Chicken Guy and its representatives access to the Franchised Restaurant and the Franchised Location at all reasonable times for the purpose of conducting inspections of the Assets; provided that such access does not unreasonably interfere with Franchisee's operations of the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, 'Chicken Guy's Purchase Notice' is a written notification from Chicken Guy to the franchisee exercising its option to purchase the assets of the franchised restaurant. After the Purchase Price has been determined, Chicken Guy has 10 days to provide this notice to the franchisee.
Following the issuance of Chicken Guy's Purchase Notice, the franchisee is obligated to continue operating the restaurant and maintaining its assets in the usual course of business, keeping all required insurance policies active until the closing date. Chicken Guy also has the right to appoint a manager, at its own expense, to oversee the day-to-day operations of the restaurant during this period, and the franchisee must cooperate with this manager. Alternatively, Chicken Guy can require the franchisee to close the restaurant without removing any assets.
After Chicken Guy's Purchase Notice, there is a 30-day 'Due Diligence Period' during which Chicken Guy can investigate the assets, including their ownership, condition, title, any liens or encumbrances, environmental issues, and the validity of contracts. The franchisee must allow Chicken Guy and its representatives access to the restaurant for these inspections, provided it does not unreasonably interfere with the restaurant's operations. The closing of the purchase, where the Purchase Price is paid in cash or cash equivalents, must occur no later than 60 days after the date of Chicken Guy's Purchase Notice.