Under what conditions can a Chicken Guy franchisee relocate their Franchised Restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign a Franchise Agreement without a Development Agreement, you must select a site which we approve, based on the site selection criteria we establish from time to time. Under the Franchise Agreement, we grant you the right to operate the Franchised Restaurant continuously at the approved site (the "Franchised Location"). You may not relocate the Franchised Restaurant without our prior written consent, which may be withheld by us in our sole discretion after reviewing a variety of factors, including population density, the proximity of other Chicken Guy! Restaurants and other relevant demographic factors. If we approve a relocation of your Franchised Restaurant, we have the right to charge you for all reasonable expenses actually incurred in connection with consideration of the request, and we may condition our approval upon the payment of an agreed minimum royalty fee to Chicken Guy during the period in which the Franchised Restaurant is not in operation.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee needs prior written consent from Chicken Guy to relocate their Franchised Restaurant. This consent is not guaranteed and can be withheld at Chicken Guy's sole discretion. Chicken Guy will consider factors such as population density, the proximity of other Chicken Guy restaurants, and other relevant demographic factors when reviewing a relocation request.
If Chicken Guy approves the relocation, the franchisee is responsible for covering all reasonable expenses that Chicken Guy incurs while considering the request. Additionally, Chicken Guy may require the franchisee to pay an agreed minimum royalty fee during the period when the restaurant is not operating due to the relocation.
This policy gives Chicken Guy significant control over where its franchises operate, ensuring that relocations align with the brand's strategic interests. For a prospective franchisee, this means that relocating a Chicken Guy restaurant is not a simple decision and involves potential costs and the risk of denial. It is important to carefully consider the initial site selection and potential future needs before entering into a franchise agreement with Chicken Guy.