factual

Does Chicken Guy have the right to change menu items?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

loyees of Franchisee who have a need to know. Franchisee shall keep its copy of the Manual current and up-to-date with all additions and deletions provided by or on behalf of Chicken Guy and shall purchase whatever equipment and related services (including, without limitation, computer system, Internet service, dedicated phone line, facsimile machine, etc.) as may be necessary to receive these communications. If a dispute relating to the contents of the Manual develops, the master copy maintained by Chicken Guy at its principal offices shall control.

11. MODIFICATIONS OF THE SYSTEM

  • A. System Modifications. Chicken Guy, in its sole discretion, shall be entitled from time to time to change or modify the System, including modifications to the Manual, the menu and menu formats, the required equipment, the signage, the building and premises of the Franchised Restaurant (including the trade dress, décor and color schemes), the presentation of the Proprietary Marks, the adoption of new administrative forms and methods of reporting and of payment of any monies owed to Chicken Guy (including electronic means of reporting and payment) and the adoption and use of new or modified Proprietary Marks or copyrighted materials. Franchisee shall accept and use or display in the Franchised Restaurant any such changes or modifications to the System as if they were a part of the System at the time this Agreement was executed, and Franchisee will make such expenditures as the changes or modifications in the System may reasonably require.
  • B. Authorized Menu Items. Within 30 days after receipt of written notice from Chicken Guy, Franchisee shall begin selling any newly authorized menu items and cease selling any menu items that are no longer authorized. All food, beverage and merchandise items authorized for sale at the Franchised Restaurant shall be offered for sale under the specific name designated by Chicken Guy. Chicken Guy, in its sole discretion, may restrict sales of menu items to certain time periods during the day. If Franchisee has a suggestion for a new menu item or for a change to an authorized menu item or Franchisee desires to participate in a test market program, Franchisee shall provide Chicken Guy written notice prior to implementation. Franchisee shall not add or modify any menu item or participate in a test market program without first having obtained Chicken Guy's prior written approval. Franchisee shall purchase any additional equipment and smallwares as Chicken Guy deems reasonably necessary in connection with new menu items. If Chicken Guy requires Franchisee to begin offering a new menu item which requires the purchase of additional equipment, a reasonable period of time, as determined in the sole discretion of Chicken Guy, shall be provided for the financing, purchase and installation of any such equipment before such new menu items must be offered for sale at the Franchised Restaurant.
  • C. Renovation of Franchised Restaurant. Extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants shall be required at Chicken Guy's request (but not more often than every 5 years). Capital expenses necessary for the repair and maintenance of the Franchised Location are not subject to the time limitations described in the preceding sentence. Within 60 days after receipt of Chicken Guy's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans for the required modernization. These drawings and plans must be submitted to, and their use approved by, Chicken Guy prior to the commencement of work.

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 extensive rights to modify the menu. Chicken Guy can require franchisees to start selling new menu items within 30 days of written notice and to stop selling items that are no longer authorized. All items must be sold under the names Chicken Guy designates, and Chicken Guy can restrict sales of items to certain times of the day. Franchisees are allowed to suggest new items, but they cannot implement them without Chicken Guy's prior written approval.

If Chicken Guy requires new equipment for new menu items, they will provide a reasonable period for financing, purchase, and installation before the items must be offered. Chicken Guy also has the right to prescribe and vary menu boards and formats, including requirements for organization, graphics, product descriptions, and illustrations, though not prices. Franchisees are responsible for setting their own prices, but Chicken Guy can implement maximum or minimum resale pricing restrictions.

These stipulations mean that a Chicken Guy franchisee must be prepared to adapt their menu and restaurant operations to the franchisor's directives. While franchisees can suggest changes, the ultimate decision-making power rests with Chicken Guy. This level of control is typical in many franchise systems, as it helps maintain brand consistency and quality across all locations. However, it also means franchisees have limited autonomy over their menu offerings and must be ready to invest in new equipment or renovations as required by Chicken Guy.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.