Does the restriction on Chicken Guy operating or licensing Chicken Guy restaurants in the Development Territory apply to Chicken Guy restaurants under construction or in operation as of the date of the agreement?

According to the 2025 Chicken Guy Franchise Disclosure Document, the restrictions on Chicken Guy operating or licensing restaurants within the Development Territory do not apply to Chicken Guy restaurants that are already under construction or in operation as of the date of the Development Agreement. This means that any existing Chicken Guy restaurants or those already being built within the territory when the agreement is signed are exempt from the exclusivity granted to the developer.

This clause protects Chicken Guy's existing interests and ongoing projects within the Development Territory. It ensures that Chicken Guy can continue operating or completing restaurants that were in progress before the agreement with the developer was finalized. This is a fairly standard practice in franchising, as franchisors typically want to maintain control over existing operations and avoid disrupting ongoing projects.

For a prospective Chicken Guy developer, this means that they may encounter existing or soon-to-be-open Chicken Guy restaurants within their Development Territory. It is crucial to understand the locations and operational status of these restaurants before signing the agreement to accurately assess the potential market and competitive landscape. The developer should clarify with Chicken Guy the exact number and locations of such restaurants to avoid any misunderstandings or conflicts later on.