Does Chicken Guy have any responsibility to ensure that the Franchised Restaurant is developed and operated in compliance with all applicable laws, ordinances and regulations?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
uitable persons of good character and reputation who will at all times conduct themselves in a competent and courteous manner in accordance with the image and reputation of Chicken Guy and the System and, while on duty, comply with the dress attire, personal appearance and hygiene standards set forth in the Manual. Franchisee shall use reasonable efforts to ensure that Franchisee's employees maintain a neat and clean appearance and render competent and courteous service to all customers and fellow employees of the Franchised Restaurant.
- K. Signs and Logos. Subject to local ordinances, Franchisee shall prominently display in and upon the land and buildings of the Franchised Restaurant interior and exterior signs and logos using the name "CHICKEN GUY!," without any prefix or suffix, and those other names, marks, advertising signs and logos, of such nature, form, color, number, location and size, and containing that material as Chicken Guy may from time to time direct. Franchisee shall not display in or upon the Franchised Location any sign, logo or advertising media of any kind to which Chicken Guy objects.
- L. Entertainment Equipment. Franchisee shall not permit at the Franchised Restaurant any juke box, vending or game machine, gum machine, game, ride, gambling or lottery device, coin or token operated machine, or any other music, film or video device not authorized by Chicken Guy.
M. Compliance with Laws and Good Business Practices.
(1) Franchisee shall secure and maintain in force in its name all required licenses, permits and certificates relating to the operation of the Franchised Restaurant. Franchisee shall operate the Franchised Restaurant in full compliance with all applicable laws, ordinances and regulations including, without limitation, all laws or regulations governing or relating to the handling of food products, immigration and discrimination, occupational hazards and health insurance, employment laws, including, without limitation, workers' compensation insurance, unemployment insurance, and the withholding and payment of federal and state income taxes, social security taxes and sales taxes. Franchisee must provide
Chicken Guy with a copy of any health inspection report upon request. All advertising and promotion by Franchisee shall be completely factual and shall conform to the highest standards of ethical advertising.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee is primarily responsible for ensuring the Franchised Restaurant complies with all applicable laws, ordinances, and regulations. The franchisee must secure and maintain all required licenses, permits, and certificates necessary for operation. This includes compliance with laws related to food handling, immigration, discrimination, occupational hazards, health insurance, employment, workers' compensation, unemployment insurance, and the withholding and payment of federal, state, and local taxes.
Chicken Guy requires franchisees to provide copies of health inspection reports upon request, ensuring transparency and adherence to health standards. Franchisees must also ensure that all advertising and promotion is factual and ethical, and that they maintain high standards of honesty and integrity in all dealings with customers, suppliers, and the public. They must avoid any business or advertising practices that could harm the goodwill associated with Chicken Guy's trademarks or business.
Furthermore, franchisees must comply with all applicable privacy laws related to customer, employee, and transactional information, adhering to Chicken Guy's standards and policies in this area. If there is a conflict between Chicken Guy's policies and applicable law, the franchisee must comply with the law, notify Chicken Guy in writing, and cooperate to find a solution that meets Chicken Guy's standards within legal bounds. The franchisee cannot publish or revise a data privacy policy without Chicken Guy's prior written consent. While Chicken Guy does not explicitly guarantee compliance, it does require certain notifications and reserves the right to inspect and provide guidance during development to ensure adherence to standards and applicable laws.