Does Chicken Guy have the right to establish regional advertising funds for Chicken Guy restaurants?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
s, contests, public relation events, and charitable or nonprofit events; (7) creative development of signage, posters, and individual restaurant décor items including wall graphics and signage; (8) development and management of a kiosk or truck program; (9) website, extranet and/or intranet development and maintenance; (10) development, implementation, and maintenance of an electronic commerce website and/or related strategies; (11) development and implementation of search engine optimization strategies; (12) development and administration of consumer surveys, interviews and other customer satisfaction and retention policies; (13) retention and payment of advertising and marketing agencies and other outside advisors including retainer and management fees; (14) public relations and community involvement activities and programs; and (15) real estate analytics and modeling. From time to time, Chicken Guy or its designee may furnish
Franchisee with marketing, advertising and promotional materials at the cost of producing them, plus any related shipping, handling and storage charges. Franchisee shall not modify any of these materials without Chicken Guy's prior written consent.
D. Regional Advertising Funds.
- (1) Chicken Guy shall have the right, in its sole discretion, to establish one or more regional advertising funds for Chicken Guy! Restaurants ("Regional Advertising Funds). If a Regional Advertising Fund is established for a geographical area that includes the Franchised Location, Franchisee shall contribute to that Regional Advertising Fund in the amount set forth in the attached Data Sheet, as subsequently modified by Chicken Guy. Chicken Guy! Restaurants operated by Chicken Guy and its affiliates in an area covered by a Regional Advertising Fund shall contribute to the Regional Advertising Fund on the same basis as comparable franchisees.
- (2) Chicken Guy or its designee shall direct all advertising, marketing, and public relations programs and activities financed by the Regional Advertising Fund, with sole discretion over the creative concepts, materials and endorsements used in those programs and activities, and the geographic, market and media placement and allocation of advertising and marketing materials. Franchisee agrees that the Regional Advertising Fund may be used to pay the costs of preparing and producing such associated materials and programs as Chicken Guy or its designee may determine, including video, audio and written advertising materials; employing advertising agencies; sponsorship of sporting, charitable or similar events; administering regional and multi-regional advertising programs, including, without limitation, purchasing direct mail and other media advertising and employing advertising agencies to assist with these efforts; and supporting public relations, market research and other advertising, promotional and marketing activities. Franchisee agrees to participate in all advertising, marketing, promotions, research and public relations programs instituted by the Regional Advertising Fund.
E. Regional Co-op.
- (1) In lieu of a Regional Advertising Fund for the area that includes the Franchised Location, Chicken Guy, in its sole discretion, may establish a Regional Co-op. Franchisee shall contribute to the Regional Co-op in the amount set forth in the attached Data Sheet, as subsequently modified by Chicken Guy. Chicken Guy, if it so elects, may prepare bylaws to be used by the Regional Co-op and may require the Regional Co-op to incorporate.
- (2) Monies in the Regional Co-op may be spent for the purposes determined by majority vote of the Regional Co-op on the basis of one vote for each Chicken Guy! Restaurant in the Regional Co-op. Unless otherwise consented to in writing by Chicken Guy, the Regional Co-op shall only conduct advertising that conforms with those advertising and sales promotions specified by Chicken Guy from time to time (including the media in which conducted).
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 establish one or more regional advertising funds for Chicken Guy restaurants. If a Regional Advertising Fund is established for a geographical area that includes the Franchised Location, the franchisee must contribute to that Regional Advertising Fund in the amount set forth in the attached Data Sheet, as subsequently modified by Chicken Guy. Chicken Guy restaurants operated by Chicken Guy and its affiliates in an area covered by a Regional Advertising Fund will contribute to the Regional Advertising Fund on the same basis as comparable franchisees.
Chicken Guy or its designee will direct all advertising, marketing, and public relations programs and activities financed by the Regional Advertising Fund, with sole discretion over the creative concepts, materials and endorsements used in those programs and activities, and the geographic, market and media placement and allocation of advertising and marketing materials. The Regional Advertising Fund may be used to pay the costs of preparing and producing associated materials and programs as Chicken Guy or its designee may determine, including video, audio and written advertising materials; employing advertising agencies; sponsorship of sporting, charitable or similar events; administering regional and multi-regional advertising programs, including purchasing direct mail and other media advertising and employing advertising agencies to assist with these efforts; and supporting public relations, market research and other advertising, promotional and marketing activities. The franchisee agrees to participate in all advertising, marketing, promotions, research and public relations programs instituted by the Regional Advertising Fund.
In lieu of a Regional Advertising Fund, Chicken Guy may establish a Regional Co-op. Franchisee shall contribute to the Regional Co-op in the amount set forth in the attached Data Sheet, as subsequently modified by Chicken Guy. Chicken Guy, if it so elects, may prepare bylaws to be used by the Regional Co-op and may require the Regional Co-op to incorporate. Monies in the Regional Co-op may be spent for the purposes determined by majority vote of the Regional Co-op on the basis of one vote for each Chicken Guy restaurant in the Regional Co-op. Chicken Guy or its designee has the right to terminate (and subsequently restart) the Regional Co-op or convert the Regional Co-op to a Regional Advertising Fund. Upon termination, all monies in the Regional Co-op shall be spent for advertising and/or promotional purposes.
Chicken Guy also plans to establish a Brand Fund for advertising, marketing and public relations, research and related programs, activities and materials. When established, the franchisee will contribute the amount set forth in the attached Data Sheet to the Brand Fund (up to a maximum annual contribution of $30,000 during each of Chicken Guy's fiscal years), which amount may be modified by Chicken Guy. Chicken Guy will have sole discretion to use the Brand Fund, and the monies in the Brand Fund, for any purpose that Chicken Guy deems will enhance and protect the System and Proprietary Marks and will improve and increase public recognition and perception of the System and Proprietary Marks. Chicken Guy restaurants operated by Chicken Guy and its affiliates will contribute to the Brand Fund on the same basis as comparable franchisees.