Is Chicken Guy required to provide prior notice before inspecting a Chicken Guy franchised location?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) To determine whether Franchisee and the Franchised Restaurant are in compliance with this Agreement and with all specifications, quality standards and operating procedures prescribed by Chicken Guy for the operation of Chicken Guy! Restaurants, Chicken Guy or its designees shall have the right at any reasonable time and without prior notice to Franchisee to: (a) inspect the Franchised Location; (b) observe, photograph and videotape the operations of the Franchised Restaurant for such consecutive or intermittent periods as Chicken Guy deems necessary; (c) remove samples of any food and beverage product, material or other products for testing and analysis (without paying for the samples); (d) interview personnel of the Franchised Restaurant; (e) interview customers of the Franchised Restaurant; and (f) inspect and copy any books, records and documents relating to the operation of the Franchised Restaurant or, upon the request of Chicken Guy or its designee, require Franchisee to send copies thereof to Chicken Guy or its designee. Franchisee shall present to its customers those evaluation forms as are periodically prescribed by Chicken Guy and shall participate and/or request its customers to participate in any surveys performed by or on behalf of Chicken Guy as Chicken Guy may direct.
- (2) Franchisee agrees to cooperate fully with Chicken Guy or its designee in connection with any such inspections, observations, videotaping, product removal and interviews. Following each inspection, Chicken Guy will provide Franchisee an inspection report listing Franchisee's score on the inspection and those conditions at the Franchised Restaurant that must be rectified. Franchisee shall take all necessary steps to immediately correct any deficiencies detected during these inspections (regardless of Franchisee's inventory), including, without limitation, ceasing further sale of unauthorized menu items and ceasing further use of any equipment, advertising materials or supplies that do not conform with the standards and requirements promulgated by Chicken Guy from time to time.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy, or its designees, has the right to inspect a franchised location at any reasonable time without providing prior notice to the franchisee. These inspections are conducted to ensure that the franchisee and the restaurant are complying with the franchise agreement, quality standards, and operating procedures set by Chicken Guy.
During these inspections, Chicken Guy can observe, photograph, and videotape the restaurant's operations, remove samples of food and beverage products for testing and analysis without payment, interview personnel and customers, and inspect and copy any relevant books, records, and documents. The franchisee is obligated to cooperate fully with Chicken Guy during these inspections.
Following each inspection, Chicken Guy will provide the franchisee with a report detailing the inspection score and any deficiencies that need to be corrected. The franchisee must then take immediate steps to rectify these deficiencies, which may include ceasing the sale of unauthorized menu items or discontinuing the use of non-conforming equipment or supplies. Failure to achieve a passing score on inspections can lead to further actions, such as mandatory additional management training or even termination of the franchise agreement.