What is the timeframe a Chicken Guy franchisee must provide written notice to exercise their renewal option?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall give Chicken Guy written notice of whether or not it intends to exercise its renewal option not less than 8 months, nor more than 12 months, before the expiration of the Initial Term.
Franchisee's failure to provide Chicken Guy the required notice in a timely manner constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for an additional 10-year term, known as the "Renewal Term." To exercise this option, the franchisee must provide Chicken Guy with written notice of their intent to renew. This notice must be given no less than 8 months and no more than 12 months before the expiration of the initial franchise term.
Failing to provide this written notice within the specified timeframe constitutes a waiver of the franchisee's right to renew. This means that if the franchisee misses the deadline, they lose the opportunity to continue operating the Chicken Guy franchise at that location beyond the initial term.
This requirement is fairly standard in franchising, as it allows Chicken Guy ample time to plan for the future of the location, whether that involves renewal with the existing franchisee or finding a new operator. It is crucial for a Chicken Guy franchisee to mark these dates on their calendar and adhere to the notification window to avoid losing their renewal option.