Does Chicken Guy have the right to change paper goods?
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. Neither we nor any of our affiliates are currently designated or approved suppliers of any products.
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 require franchisees to purchase paper and plastic products that meet their standards and specifications from approved suppliers. Chicken Guy also has the right to require franchisees to use only certain brands and to prohibit them from using other brands. Chicken Guy may modify the list of approved brands from time to time, and franchisees may not reorder any brand that is no longer approved after receiving written notification of the change.
This means that Chicken Guy franchisees must adhere to the franchisor's standards regarding paper goods and are restricted to purchasing from suppliers and using brands that Chicken Guy approves. This control allows Chicken Guy to maintain consistency across all franchise locations and ensure quality standards are met.
The FDD states that the purchase of products subject to Chicken Guy's standards and specifications represents approximately 100% of the franchisee's overall purchases in establishing and operating the Franchised Restaurant. This indicates the significant extent to which franchisees are required to comply with Chicken Guy's sourcing requirements. Franchisees should be aware that they have limited flexibility in choosing their own suppliers or brands for these essential items.
If a franchisee wants to use a supplier that Chicken Guy has not previously approved, the franchisee must submit a written request for approval. Chicken Guy has the right to inspect the supplier's facilities and require information, specifications, and samples for testing. The franchisee will bear the costs of reviewing the supplier and auditing the facility, if needed. Chicken Guy will notify the franchisee of its decision within 60 days of the request. Chicken Guy also reserves the right to re-inspect approved suppliers and revoke approval if they fail to continue meeting the required criteria.