Is Chicken Guy responsible for evaluating the Franchised Location's soil for hazardous substances?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
its refusal to approve other sites is not a representation or a promise that the approved site will have a higher sales volume or be more profitable than a site which Chicken Guy did not approve. Chicken Guy assumes no liability or responsibility for: (a) evaluation of the Franchised Location's soil for hazardous substances; (b) inspection of any structure on the Franchised Location 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 Franchisee's sole responsibility to obtain satisfactory evidence and/or assurances that the Franchised Location (and any structures thereon) is free from environmental contamination and in compliance with the requirements of the ADA.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy assumes no liability or responsibility for evaluating the Franchised Location's soil for hazardous substances. This means that the franchisee is solely responsible for obtaining satisfactory evidence that the location is free from environmental contamination.
This is a significant responsibility for prospective Chicken Guy franchisees. Environmental contamination can lead to substantial costs for remediation and potential legal liabilities. It is crucial for franchisees to conduct thorough due diligence, including soil testing and environmental assessments, before committing to a specific location.
Typically, in franchise agreements, the responsibility for ensuring environmental compliance falls on the franchisee, as they are the ones operating the business at the specific location. However, franchisees should confirm with Chicken Guy whether they have any resources available to assist with this process. Franchisees should also consult with environmental experts to ensure they meet all regulatory requirements and mitigate potential risks.