Who is solely responsible for all obligations, debts, and payments under the lease for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. The landlord agrees that Franchisee shall be solely responsible for all obligations, debts and payments under the lease.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all obligations, debts, and payments under the lease. This means that the franchisee, not Chicken Guy, is legally bound to fulfill all the terms of the lease agreement, including timely rent payments and any other financial or contractual responsibilities outlined in the lease.
This arrangement places the financial burden and risk of the lease squarely on the franchisee. If the franchisee's business struggles and cannot meet its lease obligations, the franchisee is liable for any resulting penalties or legal actions from the landlord. Chicken Guy has the right to enter the leased premises to make modifications or alterations necessary to protect the System and the Proprietary Marks, to cure, within the time periods provided by the lease, any default under the lease, and to charge Franchisee for these costs.
However, the landlord agrees to provide Chicken Guy with a copy of all amendments, assignments, and notices of default pertaining to the lease and the leased premises. This allows Chicken Guy to monitor the lease and take action if necessary to protect its brand and system. Additionally, the lease should allow the franchisee to use Chicken Guy's proprietary signs, designs, and marks, and to remove them at the franchisee's expense upon termination of the lease, while repairing any damage caused by the removal.
Prospective franchisees should carefully review the lease agreement and understand all of their obligations before signing. It is advisable to seek legal counsel to ensure they fully comprehend the terms and potential risks associated with the lease. Franchisees should also confirm that the lease contains the provisions required by Chicken Guy, as outlined in the FDD and related exhibits.