Which sections in the Chicken Guy Development Agreement and Franchise Agreement address territorial development and sales quotas?

Question

Accepted Answer

There are no minimum sales quotas or other conditions that must be met in order to maintain your territorial rights in the Development Territory. However, if you are in default under the Development Agreement (which may include, but is not limited to, a default for failing to comply with the Development Schedule) or any Franchise Agreement, we may terminate the Development Agreement and your territorial rights in the Development Territory.

| PROVISION | SECTION IN DEVELOPMENT AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the development term | Section 1.A. | The term is from the date of execution of the Development Agreement to the date that you sign a lease or purchase the site for the last Franchised Restaurant that you are required to develop under the Development Schedule. |
| PROVISION | SECTION IN DEVELOPMENT AGREEMENT | SUMMARY |
| r. Non-competition covenants after the franchise is terminated or expires | Section 12.C. | No activity as described in q. above for one year within your Development Territory, within two miles of its border and within two miles of any then- existing Chicken Guy! Restaurant. If you violate the post-termination non-competition provisions, you must pay liquidated damages equal to our then- current Initial Franchise Fee and 8% of the Gross Sales of the competing business until the expiration of the non-competition period (subject to state law). |
| s. Modification of the |	Section 20 | No modification generally without signed |
| agreement |	 | agreement, but we may modify the System. |
| t. Integration/merger clause | Section 20 | Only the terms of the Development Agreement are binding (subject to state law). Any representations or promises made outside this disclosure document and the Development Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Sections 22A. & B. | Subject to state law, either party will submit any claim, controversy, or dispute arising out of the agreement to non-binding mediation and, thereafter, to arbitration. The mediation and arbitration will take place in the city where our principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida. |
| v. Choice of forum | Section 22.D. | Subject to state law and subject to the mediation and arbitration requirement, any actions for injunctive relief must be filed in the jurisdiction where our principal offices are located at the time suit is filed, which is currently Orlando, Florida while simultaneously submitting the matter to mediation and then arbitration. |
| w. Choice of law | Section 22.C. | Subject to state law, Florida law applies. |
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
| a. Length of the | Section 2 | Ten years from the date that the Franchised Restaurant |
| franchise term |  | opens. |
| b. Renewal or extension of the term | Section 2.B. and NT Location Addendum Section 3 | You can renew for one renewal term of ten years. If you sign a Nontraditional Location Addendum to the Franchise Agreement, you can renew for two five-year renewal terms. |
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
| q. Non-competition covenants during the term of the franchise | Section 21.C. | No diversion of any business or customer to any competitor; no interest in any restaurant business that that features chicken as a primary menu item (i.e., sales of chicken menu items comprise at least 20% of sales) or whose method of operation or trade dress is similar to that used in the System (subject to state law). |
| r. Non-competition covenants after the franchise is terminated or expires | Section 21.C. | No activity as described in q. above for one year within the Protected Area and within two miles of any then-existing Chicken Guy! Restaurant. If you violate the post-termination non-competition provisions, you must pay liquidated damages equal to our then-current Initial Franchise Fee and 8% of the Gross Sales of the competing business until the expiration of the non- competition period (subject to state law). |
| s. Modification of the | Section 29 | No modification generally without signed agreement, |
| agreement |  | but we may modify the System and the Manual. |
| t. Integration/merger clause | Section 29 | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises made outside the disclosure document and the Franchise Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Sections 31.A & B. | Subject to state law, either party will submit any claim, controversy, or dispute arising out of the agreement to non-binding mediation and, thereafter, to arbitration. The mediation and arbitration will take place in the city where our principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida. |
| v. Choice of forum | Section 31.D. | Subject to state law and subject to the mediation and arbitration requirement, any actions for injunctive relief must be filed in the jurisdiction where our principal offices are located at the time suit is filed, which is currently Orlando, Florida while simultaneously submitting the matter to mediation and then arbitration. |
| w. Choice of law | Section 31.C. | Subject to state law, Florida law applies.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 23–25)

Which sections in the Chicken Guy Development Agreement and Franchise Agreement address territorial development and sales quotas?

Answer from 2025 FDD Document

What This Means (2025 FDD)

PROVISION	SECTION IN DEVELOPMENT AGREEMENT	SUMMARY
a. Length of the development term	Section 1.A.	The term is from the date of execution of the Development Agreement to the date that you sign a lease or purchase the site for the last Franchised Restaurant that you are required to develop under the Development Schedule.
PROVISION	SECTION IN DEVELOPMENT AGREEMENT	SUMMARY
r. Non-competition covenants after the franchise is terminated or expires	Section 12.C.	No activity as described in q. above for one year within your Development Territory, within two miles of its border and within two miles of any then- existing Chicken Guy! Restaurant. If you violate the post-termination non-competition provisions, you must pay liquidated damages equal to our then- current Initial Franchise Fee and 8% of the Gross Sales of the competing business until the expiration of the non-competition period (subject to state law).
s. Modification of the	Section 20	No modification generally without signed
agreement		agreement, but we may modify the System.
t. Integration/merger clause	Section 20	Only the terms of the Development Agreement are binding (subject to state law). Any representations or promises made outside this disclosure document and the Development Agreement may not be enforceable.
u. Dispute resolution by arbitration or mediation	Sections 22A. & B.	Subject to state law, either party will submit any claim, controversy, or dispute arising out of the agreement to non-binding mediation and, thereafter, to arbitration. The mediation and arbitration will take place in the city where our principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida.
v. Choice of forum	Section 22.D.	Subject to state law and subject to the mediation and arbitration requirement, any actions for injunctive relief must be filed in the jurisdiction where our principal offices are located at the time suit is filed, which is currently Orlando, Florida while simultaneously submitting the matter to mediation and then arbitration.
w. Choice of law	Section 22.C.	Subject to state law, Florida law applies.
PROVISION	SECTION IN FRANCHISE AGREEMENT	SUMMARY
a. Length of the	Section 2	Ten years from the date that the Franchised Restaurant
franchise term		opens.
b. Renewal or extension of the term	Section 2.B. and NT Location Addendum Section 3	You can renew for one renewal term of ten years. If you sign a Nontraditional Location Addendum to the Franchise Agreement, you can renew for two five-year renewal terms.
PROVISION	SECTION IN FRANCHISE AGREEMENT	SUMMARY
q. Non-competition covenants during the term of the franchise	Section 21.C.	No diversion of any business or customer to any competitor; no interest in any restaurant business that that features chicken as a primary menu item (i.e., sales of chicken menu items comprise at least 20% of sales) or whose method of operation or trade dress is similar to that used in the System (subject to state law).
r. Non-competition covenants after the franchise is terminated or expires	Section 21.C.	No activity as described in q. above for one year within the Protected Area and within two miles of any then-existing Chicken Guy! Restaurant. If you violate the post-termination non-competition provisions, you must pay liquidated damages equal to our then-current Initial Franchise Fee and 8% of the Gross Sales of the competing business until the expiration of the non- competition period (subject to state law).
s. Modification of the	Section 29	No modification generally without signed agreement,
agreement		but we may modify the System and the Manual.
t. Integration/merger clause	Section 29	Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises made outside the disclosure document and the Franchise Agreement may not be enforceable.
u. Dispute resolution by arbitration or mediation	Sections 31.A & B.	Subject to state law, either party will submit any claim, controversy, or dispute arising out of the agreement to non-binding mediation and, thereafter, to arbitration. The mediation and arbitration will take place in the city where our principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida.
v. Choice of forum	Section 31.D.	Subject to state law and subject to the mediation and arbitration requirement, any actions for injunctive relief must be filed in the jurisdiction where our principal offices are located at the time suit is filed, which is currently Orlando, Florida while simultaneously submitting the matter to mediation and then arbitration.
w. Choice of law	Section 31.C.	Subject to state law, Florida law applies.