What is the required notice period a Chicken Guy franchisee must provide to exercise their renewal option?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall give Chicken Guy written notice of whether or not it intends to exercise its renewal option not less than 8 months, nor more than 12 months, before the expiration of the Initial Term.
Franchisee's failure to provide Chicken Guy the required notice in a timely manner constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for an additional 10-year term, provided they meet certain conditions. To exercise this renewal option, the franchisee must provide Chicken Guy with written notice of their intent to renew. This notice must be given no less than 8 months and no more than 12 months before the expiration of the initial franchise term.
Failing to provide this notice within the specified timeframe constitutes a waiver of the franchisee's right to renew. This means that if the franchisee misses the notification window, they lose the opportunity to continue operating the Chicken Guy franchise beyond the initial term.
This requirement ensures that Chicken Guy has ample time to plan for the future of the franchise location, whether it involves renewal with the existing franchisee or finding a new operator. It is a fairly standard practice in franchising to require advance notice for renewal, allowing the franchisor to manage its brand and network effectively. Franchisees should mark their calendars and adhere to the notification window to avoid losing their renewal option.