Under what conditions is a Chicken Guy franchisee not entitled to vote on Regional Co-op matters?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Each franchisee who is a member of the Regional Co-op shall be entitled to vote on Regional Co-op matters; however, a franchisee shall not be entitled to vote if it is in default under its franchise agreement or any other agreement with Chicken Guy or its affiliates. Chicken Guy always shall be a member of the Regional Co-op and be entitled to attend and fully participate in Regional Co-op meetings, but Chicken Guy shall not have a vote unless it or its affiliates operates Chicken Guy! Restaurants in the area covered by the Regional Co-op. Chicken Guy shall be given at least 3 days' prior written notice of Regional Co-op meetings. If the members of the Regional Co-op are unable or fail to determine the manner in which Regional Co-op monies should be spent, Chicken Guy may assume this decision making authority following 10 days' advance written notice to the members of the Regional Co-op.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee's right to vote on Regional Co-op matters is contingent upon their compliance with agreements. Each Chicken Guy restaurant within the Regional Co-op gets one vote to determine how the co-op's funds are spent.
However, a Chicken Guy franchisee forfeits their voting rights if they are in default under their franchise agreement. This also applies to any other agreement they have with Chicken Guy or its affiliates. This condition ensures that only franchisees in good standing have a say in the co-op's decisions.
Chicken Guy itself is always a member of the Regional Co-op and can attend and participate in meetings. However, Chicken Guy only gets a vote if it or its affiliates operate Chicken Guy restaurants in the area covered by the co-op. The document also states that Chicken Guy must receive at least three days' written notice before any Regional Co-op meetings. If the Regional Co-op members cannot decide how to spend the funds, Chicken Guy can take over the decision-making authority after giving the members 10 days' advance written notice.