Is Chicken Guy responsible for ensuring that the Franchised Restaurants are developed in compliance with all applicable laws, ordinances and regulations?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy assumes no liability or responsibility for: (a) evaluation of an Authorized Site's soil for hazardous substances; (b) inspection of any structure on the Authorized Site for asbestos or other toxic or hazardous materials; (c) compliance with the Americans with Disabilities Act ("ADA"); or (d) compliance with any other applicable law.
It is Developer's sole responsibility to obtain satisfactory evidence and/or assurances that the Authorized Site (and any structures thereon) is free from environmental contamination and in compliance with the requirements of the ADA.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee, referred to as the 'Developer,' is ultimately responsible for ensuring that their franchised restaurants comply with all applicable laws, ordinances, and regulations during development. While Chicken Guy may offer guidance and set criteria for site selection, the responsibility for legal compliance rests solely with the Developer.
Chicken Guy's approval of a site does not imply any guarantee of profitability or assurance of compliance with laws like the Americans with Disabilities Act (ADA) or environmental regulations. The Developer must independently verify that the site is free from environmental contamination and meets ADA requirements. This means the franchisee needs to conduct their own due diligence to ensure the location is suitable and legally compliant.
This allocation of responsibility is fairly standard in franchising, where franchisees are independent business owners. However, it places a significant burden on the Chicken Guy franchisee to be knowledgeable about or hire experts who understand local regulations, zoning laws, and environmental issues. Failing to comply with these regulations can lead to delays, fines, or even the inability to open the restaurant.