Does Chicken Guy have the right to change supplies?

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.

Our standards and specifications for Chicken Guy! Restaurants are contained in the Manual. A list of approved suppliers is available upon written request. We estimate that the purchase of products that are subject to our standards and specifications represents approximately 100% of your overall purchases in establishing and operating the Franchised Restaurant. We do not provide material benefits to our franchisees (such as renewal or granting additional franchises) based on their purchase of particular products or services or based on their use of a particular supplier.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 40)