Does Chicken Guy select the site for my franchised restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not select the site for your Franchised Restaurant. You select the site for your Franchised Restaurant (subject to our approval). If no site has been designated at the time you sign the Franchise Agreement, you must select the site within the Site Selection Area mutually agreed to in the Franchise Agreement, and you must obtain our approval for a site before the Site Approval Deadline specified in the Franchise Agreement (which will typically be 180 days after you sign the Franchise Agreement). We may require you to engage the services of a real estate broker approved by us to assist you in identifying and securing a site for your Franchised Restaurant. If you develop the Franchised Restaurant under a Development Agreement, you must obtain our approval of a site by the site approval date identified in the Development Schedule contained in the Development Agreement. If we do not approve a site within the relevant time period, we, at our option, may terminate the Development Agreement or the Franchise Agreement, respectively. If you sign a Development Agreement, we will review your site applications for each Franchised Restaurant under the site selection criteria that have in place when we receive your application. If you develop a Nontraditional Restaurant, you must purchase or lease the location before you sign the Franchise Agreement and the Nontraditional Location Addendum. As noted in Item 1, you should not acquire any leasehold or ownership interest in a site for your Franchised Restaurant until you have been approved as a franchisee, and we have approved the site in writing.
You must submit a Real Estate Site Application (containing that information as we may reasonably require) for a proposed site which you reasonably believe conforms to site selection criteria we establish
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, you, as the franchisee, are responsible for selecting the location for your franchised restaurant, subject to Chicken Guy's approval. If a site hasn't been designated when you sign the Franchise Agreement, you must select a site within the mutually agreed-upon Site Selection Area and obtain Chicken Guy's approval before the Site Approval Deadline, typically 180 days after signing. Chicken Guy may require you to use an approved real estate broker to help find and secure a location.
If you are developing the restaurant under a Development Agreement, you must get site approval by the date in the Development Schedule. Chicken Guy will review your site applications based on the site selection criteria in place when they receive your application. If Chicken Guy doesn't approve a site within the specified time, they can terminate the Development Agreement or Franchise Agreement. For Nontraditional Restaurants, you must purchase or lease the location before signing the Franchise Agreement and the Nontraditional Location Addendum. You should not acquire any leasehold or ownership interest in a site until you are approved as a franchisee and the site is approved in writing.
You must submit a Real Estate Site Application with information that Chicken Guy reasonably requires, ensuring the proposed site meets their established site selection criteria. These criteria include demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses (including Chicken Guy restaurants), the nature of nearby businesses, commercial characteristics (like purchase price, rental obligations, and lease terms), and the site's physical characteristics and plan. Chicken Guy may use third-party real estate analysts to evaluate potential sites. You must also provide financial statements, business plans, and other information about your development and operation of the restaurant, including investment and financing plans.
Chicken Guy's Real Estate Review Committee will evaluate the proposed site using the criteria mentioned above. Within 15 days of receiving your Real Estate Site Application, business plan, and any additional required information (and, if applicable, the signed Franchise Agreement and requisite fees), Chicken Guy will inform you in writing whether the site is approved. Failure to respond within this period is considered a denial. Approvals may come with reasonable conditions at Chicken Guy's discretion. If you plan to lease or sublease the location, you must provide a copy of the fully-executed lease or sublease (with a term including renewals for at least the initial term of the Franchise Agreement) within 90 days of site approval, or 30 days for Nontraditional Restaurants after signing the Franchise Agreement and the Nontraditional Location Addendum.