Does Chicken Guy have the right to change materials?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require that you: (1) purchase those proprietary food products that will be prepared by or for Chicken Guy! Restaurants according to our proprietary special recipes and formulas ("proprietary products") only from us or a third party designated and licensed by us to prepare and sell such products ("designated suppliers"); (2) use the proprietary products only in accordance with the Manual and for items sold at the Franchised Restaurant; and (3) purchase from manufacturers, distributors, vendors and suppliers approved by us ("approved suppliers") all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials and supplies used in the preparation of products, as well as advertising materials, furniture, fixtures, equipment, smallwares, menus, menu boards, forms, paper and plastic products, packaging or other materials that meet our standards and specifications. We have the right to require that you use only certain brands and to prohibit you from using other brands. We may from time to time modify the list of approved brands (including certain brands of soft drinks and bottled beverages), and you may not, after receipt of such modification in writing, reorder any brand that is no longer an approved brand. We may from time to time modify the list of designated suppliers and/or approved suppliers, and you may not, after receipt of such modification in writing, order any proprietary products from a supplier who is no longer a designated supplier or order any goods or materials from a supplier who is no longer an approved supplier.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 40)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the right to modify the list of approved brands and designated/approved suppliers. Franchisees must comply with these modifications in writing and are prohibited from reordering any brand that is no longer approved or ordering from suppliers who are no longer designated or approved.
Chicken Guy may approve one or more suppliers for any goods or materials, potentially concentrating purchases to obtain lower prices, advertising support, or services. These approvals can be conditional, based on factors like delivery frequency, reporting, and service standards, and may be rescinded or temporary pending further evaluation. Chicken Guy also reserves the right to re-inspect approved suppliers and revoke approval if they fail to meet the established criteria.
Furthermore, Chicken Guy can modify the standards and specifications for food products, ingredients, and other materials used in the preparation of products at Chicken Guy restaurants. Franchisees are required to purchase proprietary products only from Chicken Guy or designated suppliers and must adhere to the standards and specifications set by Chicken Guy for all other goods and materials. This includes advertising materials, furniture, fixtures, equipment, menus, packaging, and other materials.
These stipulations ensure that Chicken Guy maintains consistency and quality across all franchise locations. For a prospective franchisee, this means they must stay informed of any changes to approved suppliers and product specifications and be prepared to adapt their purchasing practices accordingly. While this ensures brand consistency, it also limits the franchisee's autonomy in sourcing materials and supplies.