factual

Under what circumstances is a Chicken Guy franchisee allowed to cease continuous operation of the Franchised Restaurant for more than 5 consecutive days without risking termination?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (4) Franchisee ceases to continuously operate the Franchised Restaurant for a period in excess of 5 consecutive days, unless the closing is due to an act of God, fire or other natural disaster or is approved in writing in advance by Chicken Guy.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, a franchisee risks termination of their franchise agreement if they cease continuous operation of the franchised restaurant for more than 5 consecutive days. However, there are exceptions to this rule.

The agreement specifies two circumstances where a Chicken Guy restaurant can close for longer than 5 days without risking immediate termination. The first is if the closing is due to an "act of God, fire or other natural disaster." This covers closures forced by events outside of the franchisee's control that make operation impossible or unsafe.

The second exception is if the closure is approved in writing in advance by Chicken Guy. This implies that a franchisee can request permission for a longer closure for reasons other than disasters, but approval is at Chicken Guy's discretion. It would be prudent for a prospective franchisee to inquire about what circumstances Chicken Guy might consider for such an approval.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.