What is the required action for a Chicken Guy franchisee regarding the Grand Opening Plan before implementing it?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ined by any audit or inspection to be greater than 2%, Franchisee also shall reimburse Chicken Guy for the reasonable cost of the audit or inspection including, without limitation, the charges of attorneys and independent accountants, and the travel expenses, room, board and compensation of Chicken Guy's employees or designees involved in the audit or inspection. The foregoing remedies shall be in addition to all other remedies and rights available to Chicken Guy under this Agreement or applicable law.
- (2) If Franchisee fails to provide Chicken Guy on a timely basis with the records, reports and other information required by this Agreement or, upon request of Chicken Guy, with copies of the same, Chicken Guy or its designee shall have access at all reasonable times (and as often as necessary) to Franchisee's books and records for the purpose, among other things, of preparing the required records, reports and other information. Franchisee promptly shall reimburse Chicken Guy or its designee for all costs and expenses associated with Chicken Guy's obtaining such records, reports or other information.
9. ADVERTISING
A. Grand Open**ing Required Spending
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee must take specific steps regarding their Grand Opening Plan. At least 30 days before the restaurant opens, the franchisee is required to submit a Grand Opening Plan to Chicken Guy. This plan should detail the franchisee's proposed advertising strategies for the grand opening of their Chicken Guy restaurant.
Critically, the franchisee cannot proceed with implementing this plan until Chicken Guy provides written consent. This means that Chicken Guy has the right to review and approve the franchisee's proposed advertising activities before they are put into action. Furthermore, Chicken Guy can request modifications to the plan, and the franchisee must agree to these changes. After the plan is approved, no substantial changes can be made without Chicken Guy's advance written consent.
This requirement ensures that all grand opening advertising aligns with Chicken Guy's brand standards and marketing strategies. It gives Chicken Guy control over how its brand is presented during the crucial initial launch phase of a new franchise location. For a prospective franchisee, this means they need to budget sufficient time to create the plan, submit it for approval, and potentially revise it based on Chicken Guy's feedback before the restaurant's opening. This also highlights the importance of maintaining open communication with Chicken Guy during the grand opening planning process.
In addition to submitting and getting approval for the grand opening plan, the franchisee is obligated to spend a minimum of $10,000 on grand opening advertising during the "Grand Opening Period," which spans from 30 days before the opening to 60 days after the restaurant opens. Within 10 days after the end of the Grand Opening Period, the franchisee must provide Chicken Guy with proof of these advertising expenditures.