Under what circumstances might Chicken Guy receive fees, commissions, royalties, or other consideration from approved suppliers?

According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy and its affiliates may receive fees, commissions, royalties, or other consideration from approved suppliers based on sales to franchisees. This means that Chicken Guy could potentially profit from the sales that approved suppliers make to its franchisees. Chicken Guy may also charge non-approved suppliers reasonable testing or inspection fees.

For a prospective franchisee, this arrangement means that the cost of goods from approved suppliers could be influenced by these additional fees or commissions. While Chicken Guy aims to secure the best advertising support and services, these financial arrangements with suppliers could impact the overall cost structure for franchisees. It is important to note that Chicken Guy disclaims all warranties concerning any approved goods, materials, or services, including merchantability, fitness for a particular purpose, availability, quality, pricing, or profitability.

This type of arrangement is not uncommon in franchising, where franchisors often negotiate deals with suppliers to benefit from volume discounts or other incentives. However, it's crucial for franchisees to understand these relationships and how they might affect their bottom line. Franchisees should evaluate whether the potential benefits of using approved suppliers, such as consistent quality and brand standards, outweigh any potential cost increases due to these fees or commissions received by Chicken Guy.