Who is responsible for removing the proprietary signs and trade fixtures upon expiration or termination of the Chicken Guy lease?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
The lease or sublease shall not contain any covenants or other obligations that would prevent Developer from performing its obligations under the Franchise Agreement.
Unless waived in writing by Chicken Guy, any lease, sublease, letter of intent or lease memorandum for the Authorized Location shall contain provisions that satisfy the following requirements during the entire term of the lease, including any renewal terms:
- (1) The landlord consents to Developer's use of the proprietary signs, distinctive exterior and interior designs and layouts and the Proprietary Marks prescribed by Chicken Guy and, upon expiration or the earlier termination of the lease, consents to permit Developer, at Developer's expense, to
remove all such items and other trade fixtures, so long as Developer makes repairs to the building caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee or developer is responsible for removing proprietary signs and trade fixtures upon the expiration or termination of the lease. Specifically, the lease agreement should state that upon expiration or earlier termination of the lease, the landlord consents to permit the developer, at the developer's expense, to remove all such items and other trade fixtures, so long as the developer makes repairs to the building caused by such removal. This responsibility extends to making any necessary repairs to the building resulting from the removal.
This provision ensures that the Chicken Guy brand is protected by requiring the removal of all proprietary signage and trade fixtures when a franchise location closes. It also clarifies that the franchisee bears the cost of removal and any associated repairs to the building. This is a standard practice in franchising, as it prevents unauthorized use of the brand and maintains uniformity across all locations.
Prospective Chicken Guy franchisees should carefully review the lease agreement to ensure this provision is included and understand their obligations regarding the removal of signage and fixtures. They should also factor in the potential costs of removal and repairs when assessing the overall financial investment required to operate a Chicken Guy franchise.