What section of the Chicken Guy Franchise Agreement outlines the franchisee's obligations upon termination or expiration of the agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
23. OBLIGATIONS ON TERMINATION OR EXPIRATION
- **A.
Franchisee's Obligations.** Upon termination or expiration of this 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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, Section 23 of Item 22, titled "Obligations on Termination or Expiration," details the franchisee's responsibilities upon the termination or expiration of the franchise agreement. This section specifies several key actions a franchisee must take.
The franchisee is obligated to cease operations, discontinue using Chicken Guy's proprietary marks, and return the operations manual and all related materials. They must also make necessary modifications to the location to distinguish it from its former appearance as a Chicken Guy restaurant. Furthermore, the franchisee must continue to abide by the non-compete covenants outlined in Section 21 of the agreement.
Within 30 days of termination or expiration, the franchisee must provide Chicken Guy with evidence of compliance with these obligations, certified by an authorized representative of the franchisee. Failure to comply with these post-termination obligations could result in legal and financial repercussions for the former franchisee.