Under what condition can Chicken Guy approve an exception to the geographic restriction after the Franchise Agreement expires or terminates?

According to Chicken Guy's 2025 Franchise Disclosure Document, following the expiration or earlier termination of the Franchise Agreement, a geographic restriction applies within the Protected Area and within 2 miles of any then-existing Chicken Guy restaurant. However, Chicken Guy can approve an exception to this restriction if it provides written approval.

This means that even after a franchise agreement ends, a former franchisee is generally restricted from opening a competing restaurant within the Protected Area or near existing Chicken Guy locations. This restriction is designed to protect the brand and prevent unfair competition.

However, Chicken Guy retains the discretion to waive this restriction in writing. This provides flexibility for Chicken Guy to make exceptions on a case-by-case basis, potentially based on factors like the specific location, the nature of the proposed competing business, or the franchisee's past performance. A prospective franchisee should inquire about what factors Chicken Guy might consider when deciding whether to grant such an exception.