Do the territorial restrictions in the Chicken Guy Development Agreement apply to Chicken Guy restaurants under construction or in operation as of the date of the agreement?

According to Chicken Guy's 2025 Franchise Disclosure Document, the territorial restrictions outlined in the Development Agreement do not apply to Chicken Guy restaurants that are already under construction or in operation within the Development Territory as of the date the Development Agreement is signed. This means that even if a Development Agreement grants a developer certain territorial protections, those protections do not extend to existing Chicken Guy restaurants or those already being built. This exception is important for prospective developers to understand, as it clarifies the scope of their territorial rights.

This policy ensures that Chicken Guy retains flexibility in its market strategy and is not unduly restricted by pre-existing commitments or ongoing projects. However, it also means that a new Chicken Guy developer might face immediate competition from existing or soon-to-open locations within their designated territory. This could impact the developer's projected revenues and market share, especially in densely populated areas where multiple Chicken Guy restaurants might be viable.

It is crucial for potential Chicken Guy developers to conduct thorough due diligence to identify any Chicken Guy restaurants currently operating or under construction within their proposed Development Territory. Understanding the competitive landscape before signing the Development Agreement is essential for making informed financial projections and business plans. Developers should also inquire about the franchisor's future development plans within the territory to assess the long-term competitive environment.