Does Chicken Guy have the right to change products?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
nment or vending machine and the music programming service that is played at the Franchised Restaurant. Mandatory specifications, standards and operating procedures, including upgraded or additional equipment and software, that Chicken Guy prescribes from time to time in the Manual or otherwise communicates to Franchisee in writing, shall constitute provisions of this Agreement as if fully set forth in this Agreement.
B. Approved Products, Distributors and Suppliers.
(1) Franchisee acknowledges that the reputation and goodwill of Chicken Guy! Restaurants are based upon, and can only be maintained by, the sale of distinctive, high quality food products and beverages, and the presentation, packaging and service of such products and beverages in an efficient and appealing manner. Chicken Guy may develop certain proprietary food products that will be
prepared by or for Chicken Guy according to Chicken Guy's proprietary special recipes and formulas (collectively "proprietary products"). Chicken Guy also has developed standards and specifications for other food products, ingredients, seasonings, mixes, beverages, materials and supplies incorporated or used in the preparation, cooking, serving, packaging and delivery of prepared food products authorized for sale at Chicken Guy! Restaurants. Franchisee agrees that it will: (a) purchase those proprietary products only from Chicken Guy or a third party designated and licensed by Chicken Guy to prepare and sell such products (collectively "designated suppliers"); (b) use the proprietary products only in accordance with the Manual and for items sold at the Franchised Restaurant; and (c) purchase from manufacturers, distributors, vendors and suppliers approved by Chicken Guy (collectively "approved suppliers") all other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials and supplies used in the preparation of products (collectively "goods"), as well as advertising materials furniture, fixtures, equipment, smallwares, menus, menu boards, forms, paper and plastic products, packaging or other materials (collectively "materials") that meet the standards and specifications promulgated by Chicken Guy from time to time. Chicken Guy has the right to require that Franchisee use only certain brands and to prohibit Franchisee from using other brands. Chicken Guy may from time to time modify the list of approved brands (including certain brands of soft drinks and bottled beverages), and Franchisee shall not, after receipt of such modification in writing, reorder any brand that is no longer an approved brand.
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 retains significant control over the products offered at its franchised restaurants. Chicken Guy can modify the list of approved brands, including soft drinks and bottled beverages, and franchisees must comply with these changes after receiving written notification. Franchisees cannot reorder any brand that is no longer approved. Chicken Guy can also modify the list of designated and/or approved suppliers, and franchisees must cease ordering from suppliers who are no longer approved.
Chicken Guy also has the right to develop proprietary food products that franchisees must purchase exclusively from Chicken Guy or designated suppliers. Franchisees must use these proprietary products only in accordance with the operations manual and for items sold at the franchised restaurant. All other goods, food products, ingredients, spices, seasonings, mixes, beverages, materials, and supplies must be purchased from manufacturers, distributors, vendors, and suppliers approved by Chicken Guy and must meet the standards and specifications Chicken Guy promulgates from time to time.
Furthermore, Chicken Guy has the right to prescribe and vary menu boards and formats, which may include requirements concerning organization, graphics, product descriptions, illustrations, and other matters (except prices) related to the menu. These menu boards and formats may vary depending on region, market size, or other factors deemed relevant by Chicken Guy. If a menu board or format is no longer authorized, franchisees have a reasonable period of time (not to exceed 6 months) to discontinue its use and adopt an authorized one. While franchisees are responsible for determining the prices of products, Chicken Guy reserves the right to require compliance with any maximum price requirements it establishes.
These stipulations ensure uniformity and quality control across all Chicken Guy locations, but they also mean franchisees have limited autonomy over their product offerings and sourcing. Prospective franchisees should carefully consider these restrictions and their potential impact on their business operations and profitability.