After receiving written notification, what are Chicken Guy franchisees prohibited from doing regarding discontinued designated or approved suppliers?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
We may from time to time modify the list of designated suppliers and/or approved suppliers, and you may not, after receipt of such modification in writing, order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier. Neither we nor any of our affiliates are currently designated or approved suppliers of any products.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy may modify the list of designated and approved suppliers. After receiving written notification of these changes, franchisees are prohibited from ordering proprietary products from suppliers who are no longer designated. They are also prohibited from ordering goods or materials from suppliers who are no longer approved.
This restriction is common in franchising, as franchisors like Chicken Guy need to maintain quality control and consistency across all locations. By mandating specific suppliers, Chicken Guy can ensure that all restaurants use the same ingredients and products, which helps to maintain brand standards.
For a prospective franchisee, this means they must stay informed of any changes to the approved supplier list and immediately cease ordering from any suppliers who have been removed. Failure to comply with these requirements could result in penalties or even termination of the franchise agreement. It is important to note that neither Chicken Guy nor its affiliates are currently designated or approved suppliers of any products.