Subsequent to December 29, 2024, what action did Chicken Guy take with one of its franchisees?

According to Chicken Guy's 2025 Franchise Disclosure Document, subsequent to December 29, 2024, Chicken Guy terminated the development and franchise agreement for one of its franchisees. This information was available as of July 2, 2025, which is the date the financial statements were available to be issued.

This indicates that Chicken Guy actively manages its franchise network, and is willing to terminate agreements when necessary. For a potential franchisee, this highlights the importance of adhering to the franchise agreement terms and maintaining a positive relationship with Chicken Guy. Failure to do so could result in termination of the franchise agreement.

Terminating a franchise agreement can have significant financial implications for both the franchisor and franchisee. The FDD also notes that during the year ended December 29, 2024, Chicken Guy recognized accelerated franchise revenue of $381,500 as a result of three terminated franchise agreements and refunded $200,000 of upfront franchise and development fees to one franchisee. This demonstrates that terminations can result in Chicken Guy recognizing revenue and potentially refunding fees, depending on the specific circumstances of the termination agreement.

Prospective franchisees should inquire about the specific reasons for past terminations and the process Chicken Guy follows when considering terminating an agreement. Understanding these factors can help a franchisee assess the risks and responsibilities associated with investing in a Chicken Guy franchise.