Does the restriction against owning a competitive restaurant business apply to existing restaurant operations identified in the Chicken Guy Data Sheet?

According to Chicken Guy's 2025 Franchise Disclosure Document, the restriction against owning a competitive restaurant business does not apply to a developer's existing restaurant or foodservice operations if these operations are specifically identified in the attached Data Sheet. This exemption also extends to other restaurants operated by the developer that are franchised by Chicken Guy or its affiliates.

This clause provides a significant benefit to potential Chicken Guy developers who already have established restaurant businesses. It allows them to continue operating those businesses without being forced to divest or alter their existing operations to comply with the non-compete clause. This can be particularly valuable if the existing restaurants are profitable or strategically important to the developer's overall business portfolio.

However, it is crucial for prospective developers to ensure that all their existing restaurant or foodservice operations they wish to be exempt from the non-compete are accurately and completely listed in the Data Sheet attached to the Development Agreement. Any omissions could lead to those operations being subject to the competitive restrictions outlined in the agreement. Developers should carefully review the Data Sheet with Chicken Guy to confirm its accuracy before finalizing the agreement.