Under what conditions will Chicken Guy NOT authorize the opening of a franchised restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for a conditional opening pursuant to Section 6.B., Chicken Guy will not authorize the opening of the Franchised Restaurant unless all the following conditions have been met:
(1) Franchisee is not in material default under this Agreement or any other agreements with Chicken Guy; Franchisee is not in default beyond the applicable cure period under any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant; Franchisee is not in default beyond the applicable cure period with any vendor or supplier to the Franchised Restaurant; and for the previous 6 months, Franchisee has not been in default beyond the applicable cure period under any agreement with Chicken Guy.
(2) Franchisee is current on all obligations due Chicken Guy and Franchisee has signed all documents required by Chicken Guy to participate in Chicken Guy's electronic funds transfer program.
(3) Chicken Guy is satisfied that the Franchised Restaurant was constructed and/or renovated substantially in accordance with the Plans approved by Chicken Guy and state and local codes.
(4) If the Franchised Location is leased, Chicken Guy has received a copy of the fully-executed lease.
(5) Franchisee, to the extent approval for the sale of alcoholic beverages has been obtained from Chicken Guy, has obtained a liquor license authorizing the sale of alcoholic beverages at the Franchised Restaurant.
(6) Franchisee has obtained a certificate of occupancy and any other required health, safety or fire department certificates.
(7) Franchisee has certified to Chicken Guy in writing that the installation of all items of furnishings, fixtures, equipment, signs, computer terminals and related equipment, supplies and other items has been accomplished.
(8) An adequate number of Franchisee's managers as determined by Chicken Guy in its sole discretion have attended, successfully completed and become "certified" in the initial manager training program, and an adequate number of Franchisee's employees as determined by Chicken Guy in its sole discretion have attended and successfully completed Team Member Training (as defined in Section 12).
(9) Chicken Guy has determined that the Franchised Restaurant has been constructed and/or renovated and equipped substantially in accordance with the requirements of this Agreement and that Franchisee has hired and trained a staff in accordance with the requirements of this Agreement.
(10) Chicken Guy has been furnished with copies of all insurance policies required by Section 16 or such other evidence of insurance coverage and payment of premiums as Chicken Guy reasonably may request.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, there are several conditions that must be met before Chicken Guy will authorize the opening of a franchised restaurant, unless a conditional opening is authorized. Chicken Guy will not authorize the opening if the franchisee is in material default under the Franchise Agreement or any other agreements with Chicken Guy. This also applies if the franchisee is in default beyond the applicable cure period under any real estate lease, equipment lease, or financing instrument related to the restaurant, or with any vendor or supplier. Furthermore, if the franchisee has been in default beyond the applicable cure period under any agreement with Chicken Guy within the previous six months, authorization will be withheld.
Chicken Guy also requires that the franchisee be current on all obligations due to Chicken Guy and has signed all necessary documents to participate in Chicken Guy's electronic funds transfer program. The restaurant must be constructed or renovated substantially in accordance with the plans approved by Chicken Guy and in compliance with state and local codes. If the location is leased, Chicken Guy must have received a copy of the fully-executed lease.
Additional requirements include obtaining a liquor license (if applicable), a certificate of occupancy, and any other required health, safety, or fire department certificates. The franchisee must also certify in writing that all furnishings, fixtures, equipment, signs, computer terminals, and related items have been installed. An adequate number of the franchisee's managers must have successfully completed the initial manager training program, and an adequate number of employees must have completed Team Member Training, as determined by Chicken Guy. Finally, Chicken Guy must determine that the restaurant has been constructed, renovated, and equipped according to the agreement's requirements, and that the franchisee has hired and trained a staff in accordance with the agreement. Chicken Guy must also receive copies of all required insurance policies or other evidence of insurance coverage and premium payments.