Does Chicken Guy have the right to waive standards of the system for a franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless waived in writing by Chicken Guy, any lease, sublease, letter of intent or lease memorandum for the Authorized Location shall contain provisions that satisfy the following requirements during the entire term of the lease, including any renewal terms:
- (1) The landlord consents to Developer's use of the proprietary signs, distinctive exterior and interior designs and layouts and the Proprietary Marks prescribed by Chicken Guy and, upon expiration or the earlier termination of the lease, consents to permit Developer, at Developer's expense, to
remove all such items and other trade fixtures, so long as Developer makes repairs to the building caused by such removal.
(2) The landlord agrees to provide Chicken Guy (at the same time sent to Developer) a copy of all amendments, assignments and notices of default pertaining to the lease and the leased premises.
(3) Chicken Guy shall have the right to enter the leased premises to make any modifications or alterations necessary to protect the System and the Proprietary Marks and to cure, within the time periods provided by the lease, any default under the lease, all without being guilty of trespass or other tort, and to charge Developer for these costs.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, Chicken Guy has the right to waive certain standards and requirements for franchisees, particularly in the context of lease provisions and operations at non-traditional locations. Specifically, the lease or sublease for an authorized location must meet certain requirements, unless Chicken Guy waives them in writing. This indicates that Chicken Guy retains the discretion to modify or relax these requirements for individual franchisees.
For franchisees operating at "Nontraditional Location" or "Captive Market Location", certain provisions of the standard Franchise Agreement may not apply, and other provisions may be added to govern the franchisee's operations. This suggests that Chicken Guy is willing to adapt its standard franchise model to suit unique operating environments, which could include adjustments to menu offerings, operational requirements, or other standards. The FDD also states that Chicken Guy may request specific additional changes to the leased premises if the franchisee fails to make alterations and modifications to clearly distinguish the Leased Premises from a Chicken Guy Restaurant following the expiration or earlier termination of the Franchise Agreement.
Furthermore, the FDD notes that no waiver by Chicken Guy of any breach by a potential franchisee of any provision of the agreement shall be deemed a waiver of any preceding or succeeding breach of the same or any other provision of the agreement. No such waiver shall be effective unless in writing and then only to the extent expressly set forth in writing. This clause protects Chicken Guy from inadvertently relinquishing its rights by overlooking a violation and ensures that any waivers are explicitly documented and limited in scope.
In practical terms, this flexibility could benefit prospective Chicken Guy franchisees by allowing for customized franchise agreements that better suit their specific locations or business models. However, it also introduces an element of uncertainty, as the standards and requirements may vary from one franchisee to another. Therefore, it is crucial for potential franchisees to carefully review their individual franchise agreements and seek clarification from Chicken Guy regarding any specific waivers or modifications that may apply to their situation.