Under what conditions can a Chicken Guy franchisee be exempt from Regional Co-op membership?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Chicken Guy or its designee may grant to any franchisee an exemption for any length of time from the requirement of membership in the Regional Co-op, upon written request of such a franchisee stating reasons supporting an exemption. Decisions regarding a request for exemption shall be final. Chicken Guy shall have the sole right to enforce the obligations of franchisees who are members of the Regional Co-op to contribute to the Regional Co-op, and neither Franchisee nor any other franchisees who contribute to the Regional Co-op shall be deemed a third party beneficiary with respect to the Regional Co-op obligations of other franchisees or have any right to enforce the obligation of any franchisee to contribute to the Regional Co-op.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, a franchisee may be exempt from the requirement of membership in the Regional Co-op. To be considered for an exemption, the franchisee must submit a written request to Chicken Guy, providing reasons that support the exemption.
Chicken Guy has the sole discretion to grant an exemption for any length of time. The decision regarding the request for exemption is final.
Chicken Guy retains the exclusive right to enforce the obligations of franchisees who are members of the Regional Co-op to contribute to the Regional Co-op. Neither the franchisee requesting the exemption nor any other franchisees contributing to the Regional Co-op are considered third-party beneficiaries, and therefore, they do not have the right to enforce the contribution obligations of other franchisees.