During the term of the Chicken Guy Franchise Agreement, what is the geographical limitation on the restriction against owning or operating a competitive business?

According to Chicken Guy's 2025 Franchise Disclosure Document, during the term of the Franchise Agreement, there is no geographical limitation on the restriction against owning or operating a competitive business. This means that a franchisee is restricted from involvement in any competitive restaurant business, regardless of its location, for the duration of their agreement with Chicken Guy.

This restriction is significant for prospective franchisees as it limits their ability to invest in or operate any competing restaurant concept, even outside of their immediate market. This could impact other business interests or potential investment opportunities a franchisee might have. The FDD specifies that the restriction applies to restaurant businesses that feature chicken as a primary menu item (at least 20% of sales) or whose operation or trade dress is similar to the Chicken Guy system.

After the franchise agreement expires or terminates early, the geographical scope of the restriction changes. At that point, the restriction applies within the franchisee's Protected Area and within 2 miles of any then-existing Chicken Guy restaurant. Franchisees should carefully consider this broad restriction and how it might affect their future business endeavors, both during the term of the agreement and for one year after.