What technology system components are Chicken Guy franchisees required to purchase or lease?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
advertising expenditures to us.
Point of Sale System and Technology
You must purchase (or lease), install, and maintain, at your expense, a technology system including such data processing equipment, computer hardware, software, point of sale system, required dedicated data, telephone lines, broadband and wireless Internet connections, modems, printers and other computerrelated accessories or peripheral equipment that we require. You must sign any applicable licensing agreements with third party developers or manufacturers of those systems.
Your point of sale system must be capable of recording customer transactions, collecting and generating gross sales reports allowing us to poll data and sales from the Franchised Restaurant, and collecting and generating sales reports by categories, including, but not limited to, menu mix by day-parts and order type (dine-in, to go, etc.). The system also must be capable of complying with the Payment Card Industry Data Security Standard (PCI Standards) and the Fair Credit Reporting Act, which requires that, among other things, merchants truncate credit card and debit card numbers. You must provide all assistance required by us to bring your point of sale system on-line with our technology system. We have the independent right under the Franchise Agreement to retrieve any data and information from your point of sale system that we deem appropriate, including electronically polling the daily sales, menu/product mix and other data of the Franchised Restaurant. There are no contractual limitations on our right to access this information and data.
Currently, we have approved the Toast Point of Sale system and software for front-of-house operations and Restaurant365 for back-of-house management; however we may permit our franchisees to use a different system on a case by case basis. We estimate that it will cost you approximately $4,500 to $30,000 to purchase the point of sale system for your Franchised Restaurant. We may require you to replace, upgrade, or update these systems at any time during the term of the Franchise Agreement at your expense,
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, franchisees must purchase or lease a technology system that includes data processing equipment, computer hardware, software, a point-of-sale (POS) system, dedicated data and telephone lines, broadband and wireless internet connections, modems, printers, and other computer-related accessories. Franchisees are also required to sign licensing agreements with third-party developers or manufacturers of these systems.
The POS system must record customer transactions, generate gross sales reports, and provide sales reports by categories such as menu mix by day-parts and order type. The system must also comply with the Payment Card Industry Data Security Standard (PCI Standards) and the Fair Credit Reporting Act, including truncating credit card and debit card numbers. Chicken Guy has the right to retrieve any data from the franchisee's POS system, including daily sales and menu/product mix.
Currently, Chicken Guy approves the Toast Point of Sale system and software for front-of-house operations and Restaurant365 for back-of-house management, but may allow franchisees to use different systems on a case-by-case basis. The estimated cost to purchase the POS system ranges from $4,500 to $30,000. Chicken Guy may require franchisees to replace, upgrade, or update these systems at any time during the franchise term, with no limitations on frequency or cost.
This requirement ensures that Chicken Guy franchisees have the necessary technology to operate efficiently and meet the brand's standards for data collection and security. The potential for required system upgrades at any time and without cost limitations represents a significant financial risk for franchisees.