Can Chicken Guy require the franchisee to close the Chicken Guy restaurant during the period between the Purchase Notice and Closing?

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the option to require the franchisee to close the franchised restaurant during the period between Chicken Guy's Purchase Notice and the Closing. Alternatively, instead of closing the restaurant, Chicken Guy can appoint a manager at Chicken Guy's expense to oversee the day-to-day operations, and the franchisee must cooperate with this manager.

This clause gives Chicken Guy significant control over the restaurant's operations during the transition period if they decide to purchase the assets. The franchisee must be prepared to either relinquish control to a manager appointed by Chicken Guy or cease operations entirely during this time. This could impact revenue and require careful management of staff and resources during the transition.

The Purchase Notice initiates a series of actions, including the determination of the Purchase Price, Chicken Guy's due diligence, and the eventual Closing. The Closing must occur no later than 60 days after the date of Chicken Guy's Purchase Notice. During this period, the franchisee is obligated to maintain the restaurant and assets in the usual and ordinary course of business and keep all required insurance policies in full force.