Under what condition can Chicken Guy approve an exception to the geographic restriction against owning a competitive restaurant business after the Development Term?

According to Chicken Guy's 2025 Franchise Disclosure Document, after the Development Term, a franchisee is restricted from owning or being involved in a restaurant business that features chicken as a primary menu item (at least 20% of sales) or has a similar operation or trade dress to the Chicken Guy system. This restriction applies within the Development Territory, within 2 miles of its border, and within 2 miles of any existing Chicken Guy restaurant.

However, Chicken Guy may provide written approval to waive this restriction. This means a franchisee could potentially own or be involved with a competitive restaurant within the restricted area if Chicken Guy grants an exception in writing. Without this written approval, the franchisee is bound by the geographic restrictions outlined in the FDD.

It is important for prospective franchisees to understand the scope and duration of these restrictions, as well as the process for requesting an exception. Franchisees should carefully consider how these limitations might impact their future business opportunities and discuss any concerns with Chicken Guy during their due diligence.