Can Chicken Guy transfer monies between the Brand Fund and Regional Advertising Funds?

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the authority to transfer funds between the Brand Fund and Regional Advertising Funds. Specifically, Chicken Guy can move monies from the Brand Fund to any Regional Advertising Fund, or conversely, from all Regional Advertising Funds to the Brand Fund. This decision is made at Chicken Guy's discretion, as they deem appropriate, to maximize media effectiveness.

This flexibility allows Chicken Guy to strategically allocate advertising resources based on the needs of the overall brand and specific regional markets. For example, if a particular region requires additional marketing support, Chicken Guy can transfer funds from the Brand Fund to the relevant Regional Advertising Fund. Conversely, if the Brand Fund has a significant opportunity for a national campaign, Chicken Guy can consolidate funds from the Regional Advertising Funds.

For a prospective franchisee, this means that the advertising fees they contribute could be used either for national brand-building efforts or for regional marketing initiatives. While franchisees must participate in all advertising programs instituted by both the Brand Fund and Regional Advertising Funds, the ultimate allocation of these funds is controlled by Chicken Guy. Franchisees do not have direct control over how these funds are spent, but the FDD states that Chicken Guy will endeavor to utilize each fund to develop advertising and marketing materials and programs and to place advertising that will benefit the System and all Chicken Guy! Restaurants contributing to the fund.

It is important for franchisees to understand that Chicken Guy is not liable if expenditures in any geographic area are not proportionate to the contributions from that area. Franchisees also cannot sue Chicken Guy for how the advertising funds are managed. However, Chicken Guy is obligated to provide an annual statement of monies collected and costs incurred by each fund upon written request from the franchisee, providing some level of transparency.