What rights does Chicken Guy have to ensure compliance with the Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Franchisee and its employees at the Franchised Restaurant shall be in compliance with Chicken Guy's then-current training requirements.
(f) As determined by Chicken Guy in its sole discretion, Franchisee has operated the Franchised Restaurant and all of its other franchised Chicken Guy!
Restaurants in accordance with the applicable franchise agreements and with the System (as set forth in the Manual or otherwise and as revised from time to time by Chicken Guy) and has operated each of its other restaurants that are franchised by Chicken Guy or its affiliates in accordance with the applicable franchise agreement.
- **B.
Evidence of Compliance.** Franchisee shall furnish Chicken Guy, within 30 days after the effective date of termination or expiration, evidence (certified to be true, complete, accurate and correct by the chief executive officer of Franchisee, if Franchisee is a corporation; by a manager of Franchisee, if Franchisee is a limited liability company; or by a general partner of Franchisee, if Franchisee is a partnership) satisfactory to Chicken Guy of Franchisee's compliance with Sections 23.A. through 23.F.
- **E.
Inspection, Cooperation.** During the course of construction and/or renovation, Franchisee shall (and shall cause Franchisee's architect, project manager, engineer, general contractor and subcontractors to) cooperate fully with Chicken Guy and its designees for the purpose of permitting Chicken Guy and its designees to inspect the Franchised Location and the course of construction of the Franchised Restaurant in order to determine whether construction is proceeding according to the Plans.
- **F.
Reports.** If requested by Chicken Guy, Franchisee shall submit to Chicken Guy, on or before the first day of each month (or more frequently if Chicken Guy requests), a report with photographs showing progress made in connection with the construction and equipping of the Franchised Restaurant.
Chicken Guy reserves the right to require that a reasonable sum of money be placed in escrow to ensure that all of these obligations are satisfied.
27. CONSENTS, APPROVALS AND WAIVERS
- A. Whenever this Agreement requires the prior approval or consent of Chicken Guy, Franchisee shall make a timely written request to Chicken Guy therefor, and any approval or consent received, in order to be effective and binding upon Chicken Guy, must be obtained in writing and be signed by an authorized officer of Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy has several rights to ensure franchisees comply with the Franchise Agreement. Chicken Guy can inspect the Franchised Location during construction and/or renovation to ensure it aligns with the approved plans. Franchisees must cooperate fully with Chicken Guy and its designees during this process, providing samples of construction materials and access to the site. If requested, franchisees must also submit monthly reports with photographs showing construction progress.
Chicken Guy also requires franchisees and their employees to comply with the company's then-current training requirements. Franchisees must operate their restaurants in accordance with the standards and specifications outlined in the Operations Manual and franchise agreements. Chicken Guy retains the right to develop, use, and control the Proprietary Marks to maintain the System's standards of quality, appearance, and service.
To further ensure compliance, Chicken Guy can request evidence of compliance with termination obligations from the franchisee within 30 days after termination or expiration of the agreement. This evidence must be certified as true and accurate by a chief executive officer, manager, or general partner of the franchisee. Chicken Guy's consent or approval is required for certain actions, and any such consent must be in writing and signed by an authorized officer of Chicken Guy to be effective. Chicken Guy can also require a reasonable sum of money to be placed in escrow to ensure that all obligations are satisfied.