Does the restriction on operating a competing restaurant business apply to the Developer's existing restaurant or foodservice operations identified in the Data Sheet for Chicken Guy?

According to Chicken Guy's 2025 Franchise Disclosure Document, the restriction on operating a competing restaurant business does not apply to the Developer's existing restaurant or foodservice operations if they are identified in the attached Data Sheet. This means that if a prospective Chicken Guy developer already owns or operates a restaurant or foodservice business, and that business is listed in the Data Sheet accompanying the Development Agreement, the non-compete clause will not prevent them from continuing to operate that existing business.

However, this exception is limited to existing operations specifically identified in the Data Sheet. Any new restaurant or foodservice ventures the developer starts during the Development Term would be subject to the restrictions outlined in the agreement. These restrictions include not operating a restaurant business that features chicken as a primary menu item (at least 20% of sales) or whose method of operation or trade dress is similar to the Chicken Guy system.

Following the expiration or termination of the Development Term, the restriction applies within the Development Territory, within 2 miles of the border, and within 2 miles of any existing Chicken Guy restaurant, unless Chicken Guy provides written approval otherwise. It is important for potential developers to carefully review the Data Sheet and understand the scope of any existing restaurant or foodservice operations that are excluded from the non-compete restrictions. Any ambiguity or uncertainty should be clarified with Chicken Guy before signing the Development Agreement.