Under what conditions can Chicken Guy or its designee control how a Crisis Situation is handled at a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If an event occurs at the Franchised Restaurant that has or reasonably may cause harm or injury to customers, guests or employees (i.e., food spoilage/poisoning, food tampering/sabotage, slip and fall injuries, natural disasters, robberies, shootings, etc.) or may damage the Proprietary Marks, the System or the reputation of Chicken Guy (collectively "Crisis Situation"), Franchisee shall: (a) immediately contact appropriate emergency care providers to assist it in curing the harm or injury; and (b) immediately inform Chicken Guy by telephone of the Crisis Situation. Franchisee shall refrain from making any internal or external announcements (i.e., no communication with the news media) regarding the Crisis Situation (unless otherwise directed by Chicken Guy or public health officials).
- (2) To the extent Chicken Guy deems appropriate, in its sole and absolute discretion, Chicken Guy or its designee may control the manner in which the Crisis Situation is handled by the parties,
including, without limitation, conducting all communication with the news media, providing care for injured persons and/or temporarily closing the Franchised Restaurant. The parties acknowledge that, in directing the management of any Crisis Situation, Chicken Guy or its designee may engage the services of attorneys, experts, doctors, testing laboratories, public relations firms and those other professionals as it deems appropriate. Franchisee and its employees shall cooperate fully with Chicken Guy or its designee in its efforts and activities in this regard and shall be bound by all further Crisis Situation procedures developed by Chicken Guy from time to time hereafter. The indemnification under Section 26 shall include all losses and expenses that may result from the exercise by Chicken Guy or its designee of the management rights granted in this Section 32.F.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy or its designee can control the handling of a crisis situation at a franchised restaurant if Chicken Guy deems it appropriate in its sole and absolute discretion. A "Crisis Situation" is defined as an event that has or reasonably may cause harm or injury to customers, guests, or employees, such as food issues, injuries, natural disasters, or robberies, or that may damage the Proprietary Marks, the System or the reputation of Chicken Guy.
In the event of a Crisis Situation, the franchisee is required to immediately contact emergency care providers and inform Chicken Guy by telephone. The franchisee must also refrain from making any internal or external announcements, including communication with the news media, unless directed otherwise by Chicken Guy or public health officials.
If Chicken Guy decides to take control, it or its designee may manage all aspects of the situation, including communication with the news media, providing care for injured persons, and temporarily closing the restaurant. Chicken Guy may also engage the services of professionals such as attorneys, experts, doctors, public relations firms, and testing laboratories. The franchisee and its employees must fully cooperate with Chicken Guy in these efforts and adhere to any further crisis situation procedures developed by Chicken Guy. The franchisee is also responsible for losses and expenses resulting from Chicken Guy's management of the crisis situation, as covered by the indemnification clause in Section 26 of the franchise agreement.