After termination of the Development Agreement, does Chicken Guy have the right to operate or license others to operate restaurants identified by the 'CHICKEN GUY!' name and mark in the Development Territory?

According to Chicken Guy's 2025 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, the limited exclusive rights granted to the Developer in the Development Territory will terminate. Following this, Chicken Guy has the right to operate or license others to operate restaurants identified by the "CHICKEN GUY!" name and mark anywhere within the Development Territory. This means that once the agreement ends, Chicken Guy is no longer restricted from opening its own restaurants or allowing other franchisees to open Chicken Guy restaurants in the territory that was previously assigned to the developer.

This clause is significant for potential developers as it highlights that the exclusivity granted by the Development Agreement is not permanent. If the agreement terminates or expires, Chicken Guy regains full control over the Development Territory. This could occur for various reasons, such as failure to meet development schedules or other breaches of the agreement.

For a prospective developer, this underscores the importance of adhering to the terms of the Development Agreement to maintain exclusive rights within the territory. It also suggests that a developer should carefully evaluate the market potential and their ability to meet the development schedule outlined in the agreement to avoid potential termination and subsequent loss of territorial exclusivity.