Who is responsible for the expenses related to obtaining permits, constructing improvements, and purchasing inventory for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
e intent to maintain continuous construction thereafter.
- (2) Once construction has commenced, it shall continue uninterrupted except for interruption by reason of events constituting Force Majeure until completed. Force Majeure means any act of God, strike, lock-out or other industrial disturbance, war (declared or undeclared), riot, epidemic, fire or other catastrophe, act of any government or other third party and any other cause not within the control of the party affected thereby. If events constituting Force Majeure cause a delay in the commencement of construction of the Franchised Restaurant, Chicken Guy shall proportionately extend the Opening Deadline (as defined below) for the Franchised Restaurant. Notwithstanding the occurrence of any events, except events constituting Force Majeure, construction shall be completed, and the Franchised Restaurant shall be furnished, equipped and shall otherwise be ready to open for business in accordance with this Agreement not later than the date specified in the attached Data Sheet ("Opening Deadline").
- (3) Franchisee agrees, at its sole expense, to do, or cause to be done, the following, by the Opening Deadline:
- (a) Obtain and maintain all required building, utility, sign, health, sanitation, business and other permits and licenses applicable to the Franchised Restaurant.
- (b) Construct all required improvements to the Franchised Location and decorate the exterior and interior of the Franchised Restaurant in compliance with the Plans approved by Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the expenses associated with permits, construction, and inventory. Specifically, the franchisee must obtain and maintain all necessary permits and licenses, construct required improvements, and purchase the initial inventory of approved products. This encompasses building permits, utility connections, signage, health and sanitation approvals, and general business licenses.
The franchisee is also responsible for the costs associated with constructing all required improvements to the franchised location. This includes decorating both the exterior and interior of the restaurant in accordance with Chicken Guy's approved plans. Furthermore, the franchisee must purchase or lease and install all specified and required fixtures, equipment, furnishings, and interior and exterior signs. These must meet Chicken Guy's standards for quality, design, appearance, function, and performance and be sourced from approved suppliers.
In addition to construction and equipping costs, the franchisee bears the expense of purchasing the initial inventory for the restaurant. This inventory must consist of only authorized and approved products, materials, and supplies. The franchisee also assumes all costs, liabilities, and expenses for locating, obtaining, and developing a site for the restaurant, ensuring it aligns with Chicken Guy's standards. This financial responsibility underscores the significant investment required by the franchisee to establish and operate a Chicken Guy franchise.