Under what conditions can Chicken Guy intervene to resolve customer complaints at a Chicken Guy franchised restaurant?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee shall immediately resolve any customer complaints regarding the quality of food or beverages, service and/or cleanliness of the Franchised Restaurant or any similar complaints. When any customer complaints cannot be immediately resolved, Franchisee shall use reasonable efforts to resolve the customer complaints as soon as practical and shall, whenever feasible, give the customer the benefit of the doubt. If Chicken Guy, in its sole discretion, determines that its intervention is necessary or desirable to protect the System or the goodwill associated with the System, or if Chicken Guy, in its sole discretion, believes that Franchisee has failed adequately to address or resolve any customer complaints, Chicken Guy may, without Franchisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover Chicken Guy's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay Chicken Guy immediately on demand.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are expected to resolve customer complaints immediately regarding food quality, service, cleanliness, or similar issues. Franchisees should make reasonable efforts to resolve complaints quickly, giving the customer the benefit of the doubt whenever possible.
However, Chicken Guy reserves the right to intervene in customer complaint resolution under specific circumstances. Chicken Guy may intervene if it determines, in its sole discretion, that intervention is necessary or desirable to protect the Chicken Guy system or its associated goodwill. Chicken Guy can also step in if it believes the franchisee has failed to adequately address or resolve customer complaints.
If Chicken Guy intervenes, it can resolve the complaints without the franchisee's consent. The franchisee will be charged an amount sufficient to cover Chicken Guy's reasonable costs and expenses in resolving the complaints, which the franchisee must pay immediately upon demand. This clause highlights the importance of franchisees proactively and effectively managing customer complaints to avoid intervention and associated costs from Chicken Guy.