What right does Chicken Guy have regarding communication about a proposed transfer?

According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy has the right to communicate and counsel with both the developer (franchisee) and the proposed transferee (buyer) regarding any aspect of the proposed transfer. This communication can occur without Chicken Guy incurring any liability to either party. Specifically, Chicken Guy is not liable to the transferee if the transfer is approved but the transferee later experiences financial difficulties. Similarly, Chicken Guy is not liable to the developer or the proposed transferee if the transfer is disapproved for legitimate business reasons.

This provision allows Chicken Guy to maintain oversight and control over who becomes a franchisee and ensures that both parties involved in the transfer are fully informed. By having open communication channels, Chicken Guy can assess the suitability of the proposed transferee and provide guidance to ensure a smooth transition. This also protects Chicken Guy's brand and reputation by ensuring that new franchisees meet their standards.

For a prospective Chicken Guy franchisee, this means that if they decide to sell their franchise, Chicken Guy has the right to be involved in the communication process between the franchisee and the potential buyer. Chicken Guy can offer advice, express concerns, and ensure that both parties understand the obligations and expectations involved in the transfer. This involvement aims to protect the interests of all parties and maintain the integrity of the Chicken Guy franchise system.