Under what circumstances do the site development procedures outlined in Section 3 not apply to a Chicken Guy franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is developing the Franchised Restaurant pursuant to a Chicken Guy! Restaurant Development Agreement or Chicken Guy has approved the site for the Franchised Restaurant as of the date of this Agreement, the provisions of this Section 3 shall not apply.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the site development procedures outlined in Section 3 do not apply under specific circumstances. If a franchisee is developing their restaurant under a Chicken Guy! Restaurant Development Agreement, they are exempt from the standard site development procedures. Similarly, if Chicken Guy has already approved the restaurant site as of the date of the Franchise Agreement, the franchisee does not need to follow Section 3's site development procedures.
This exemption implies that some franchisees may have pre-negotiated or pre-approved locations as part of a larger development deal or initial agreement with Chicken Guy. This could be advantageous for franchisees who want to expedite the opening process or who have secured a particularly desirable location independently. However, it's crucial for prospective franchisees to understand the terms of any Restaurant Development Agreement and ensure they are comfortable with the site already approved by Chicken Guy.
It is important for potential franchisees to clarify with Chicken Guy the specific criteria used for site approval and the implications of developing a restaurant under a Restaurant Development Agreement. Understanding these conditions is essential for making an informed investment decision and ensuring a smooth development process.