Does Chicken Guy have the right to communicate with both the franchisee and the proposed transferee regarding a proposed Chicken Guy franchise Transfer?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy, without any liability to Franchisee or the proposed transferee, has the right, in its reasonable business discretion, to communicate and counsel with Franchisee and the proposed transferee regarding any aspect of the proposed Transfer.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the right to communicate with both the franchisee and the proposed transferee regarding any aspect of the proposed franchise transfer. This communication can include counseling the franchisee and the proposed transferee. Chicken Guy will not be liable to the franchisee or the proposed transferee for communicating about the transfer.
This provision allows Chicken Guy to ensure that both parties are fully informed and suitable for the transfer. Chicken Guy can share its expectations, provide guidance, and address any concerns either party may have. This open communication aims to facilitate a smooth transition and protect the brand's interests.
For a prospective franchisee, this means that if they decide to sell their Chicken Guy franchise, Chicken Guy has the right to be involved in discussions with both the seller and the potential buyer. This involvement is intended to help Chicken Guy assess the suitability of the transfer and ensure that the new franchisee meets their standards. Franchisees should be prepared for Chicken Guy to actively participate in the transfer process.