What right does Chicken Guy have regarding communication and counseling during a proposed Chicken Guy franchise transfer?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy's decision with respect to a proposed Transfer shall not create any liability on the part of Chicken Guy: (a) to the transferee, if Chicken Guy approves the Transfer and the transferee experiences financial difficulties; or (b) to Franchisee or the proposed transferee, if Chicken Guy disapproves the Transfer pursuant to this Section 19 or for other legitimate business purposes.
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 and counsel with both the franchisee and the proposed transferee regarding any aspect of the proposed transfer. This right is granted to Chicken Guy without any liability to either the franchisee or the proposed transferee.
This provision allows Chicken Guy to maintain control over who becomes a franchisee and ensures that both parties involved in the transfer are well-informed. Chicken Guy can discuss various aspects of the transfer, potentially including the transferee's qualifications, the financial implications of the transfer, and the operational standards expected of a Chicken Guy franchisee.
For a prospective franchisee, this means that Chicken Guy can provide guidance and express concerns about the transfer, which could influence the final decision. It also implies that Chicken Guy is not obligated to approve every transfer and can use its discretion to ensure the continued success and brand consistency of the Chicken Guy franchise system. This communication and counseling can help ensure a smooth transition and alignment of expectations between all parties involved.