What rights does Chicken Guy reserve regarding the System and Proprietary Marks?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, Chicken Guy reserves to itself the rights to: (1) operate, and license others to operate, restaurants identified in whole or in part by the name and mark "CHICKEN GUY!" and/or utilizing the System in the Development Territory that are located in airports, train stations, bus stations, service plazas, stadiums, arenas, convention centers, military facilities, gas stations, convenience stores, schools, colleges, universities, hospitals, theme parks, office buildings, food courts, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location not reasonably available to Developer; (2) award national or regional licenses to third parties to sell products under the name and mark "CHICKEN GUY!" in foodservice facilities primarily identified by the third party's trademark; (3) develop and operate, and license others to develop and operate, restaurants other than restaurants identified in whole or in part by the name and mark "CHICKEN GUY!" and/or utilizing the System in the Development Territory; (4) merchandise and distribute products identified by some or all of the Proprietary Marks in the Development Territory through any other method or channel of distribution; and (5) sell and distribute products identified by some or all of the Proprietary Marks in the Development Territory to restaurants other than restaurants identified in whole or in part by the name and mark "CHICKEN GUY!," provided those restaurants are not licensed to use the Proprietary Marks in connection with their retail sales.
- B. Except as reserved in the preceding paragraph, Chicken Guy will not, during the Development Term, operate, or license others to operate, restaurants identified in whole or in part by the name and mark "CHICKEN GUY!" in the Development Territory, provided Developer is in compliance with the terms of this Agreement and any other agreements with Chicken Guy or its affiliates and is current on all obligations due Chicken Guy and its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, Chicken Guy retains specific rights regarding the System and Proprietary Marks, particularly in locations not readily accessible to the developer. These locations include airports, train stations, bus stations, service plazas, stadiums, arenas, convention centers, military facilities, gas stations, convenience stores, schools, colleges, universities, hospitals, theme parks, office buildings, food courts, venues with master concessionaires or contract foodservice providers, Indian reservations, and casinos. Chicken Guy reserves the right to operate or license others to operate restaurants in these locations, even within the developer's territory.
Chicken Guy also reserves the right to award national or regional licenses to third parties, allowing them to sell products under the "CHICKEN GUY!" name and mark in foodservice facilities primarily identified by the third party's trademark. Additionally, Chicken Guy can develop, operate, and license others to develop and operate restaurants that are not identified by the "CHICKEN GUY!" name and mark, even within the developer's territory. They can also merchandise and distribute products identified by the Proprietary Marks through any other method or channel of distribution in the Development Territory.
Furthermore, Chicken Guy retains the right to sell and distribute products identified by the Proprietary Marks to restaurants that are not branded as "CHICKEN GUY!," as long as these restaurants are not licensed to use the Proprietary Marks in connection with their retail sales. However, outside of these reserved rights, Chicken Guy agrees not to operate or license others to operate Chicken Guy restaurants within the developer's designated territory, provided the developer remains in compliance with all agreements and is current on all financial obligations to Chicken Guy and its affiliates. This ensures that franchisees have some territorial protection, but with significant exceptions carved out for non-traditional venues and alternative distribution channels.