Does Chicken Guy reserve the right to waive the requirement for some or all individuals to execute the Guarantee?

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy retains the right to waive the guarantee requirement for certain individuals. Specifically, Chicken Guy may choose not to require all members of the Continuity Group, their spouses, officers, directors, or holders of 10% or more legal or beneficial interest in the Developer (10% Owners) to execute the Guarantee. This waiver is at Chicken Guy's sole discretion. Chicken Guy also reserves the right to request personal financial statements from any guarantor at any time.

For prospective Chicken Guy franchisees, this means that while guarantees are generally required from key individuals and entities associated with the Developer, Chicken Guy has the flexibility to waive this requirement in certain cases. This could potentially reduce the personal liability exposure for some individuals involved in the franchise. However, it's important to note that Chicken Guy's decision to waive the guarantee is entirely at their discretion and may be subject to certain conditions or considerations.

Furthermore, Chicken Guy intends for the guarantees to be executed by individuals rather than corporations or LLCs. If a 10% Owner is not an individual, Chicken Guy has the right to require individuals with an indirect ownership interest in the Developer to execute the Guarantee. This ensures that personal accountability is maintained even when ownership is held through business entities. If the Developer or any guarantor has interests in other Chicken Guy franchises, they may be required to execute a cross-guarantee for the obligations of those restaurants, unless Chicken Guy waives this requirement in writing.

In summary, while Chicken Guy typically requires guarantees from key individuals and entities, they retain the right to waive this requirement at their discretion. Prospective franchisees should discuss the specific guarantee requirements and potential waivers with Chicken Guy during the franchise application process to fully understand their obligations and potential liabilities.