What standards are used to value the leasehold improvements, equipment, furnishings, fixtures, signs, and inventory during the appraisal for Chicken Guy?

According to Chicken Guy's 2025 Franchise Disclosure Document, the valuation of leasehold improvements, equipment, furnishings, fixtures, signs, and inventory during an appraisal is based on their fair market value. The fair market value accounts for reasonable depreciation and the condition of the assets as of the purchase date. However, the purchase price will consider the termination of the Franchise Agreement.

Notably, the valuation explicitly excludes any consideration for trademarks, service marks, or other commercial symbols associated with the Chicken Guy restaurant, as well as any goodwill or "going concern" value. This means the appraisal focuses solely on the tangible assets and their depreciated value, not on the brand's reputation or potential future earnings.

The FDD also states that Chicken Guy has the right to exclude any assets that do not meet the current standards for a Chicken Guy restaurant or for which the franchisee cannot provide a satisfactory bill of sale. This implies that franchisees must maintain their equipment and inventory to the franchisor's standards to receive fair value during a potential purchase by Chicken Guy. If Chicken Guy and the franchisee cannot agree on the fair market value, certified appraisers will determine the value. The appraisers are given full access to the restaurant and the franchisee's books and records to conduct the appraisal.