Under what conditions can Chicken Guy suspend contributions to the advertising fund?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Chicken Guy reserves the right, in its sole discretion, to: (a) suspend contributions to and operations of each fund for one or more periods that it determines to be appropriate; (b) terminate any fund upon 30 days' written notice to Franchisee and establish, if Chicken Guy so elects, one or more new advertising funds; and (c) defer or waive, in whole or in part, upon the written request of any franchised or company restaurants, any advertising fees required by this Section if, in Chicken Guy's sole judgment, there has been demonstrated unique, objective circumstances justifying any such waiver or deferral. On termination of a fund, all monies in the fund shall be spent for advertising and/or promotional purposes. Chicken Guy has the right to reinstate any fund upon the same terms and conditions set forth in this Agreement upon 30 days' prior written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy reserves the right to suspend contributions to and operations of each fund for one or more periods that it determines to be appropriate. This means that Chicken Guy has the discretion to halt contributions to either the Brand Fund or any Regional Advertising Fund for any length of time they deem necessary.
Chicken Guy can also terminate any fund with 30 days' written notice to the franchisee. If a fund is terminated, all monies in it must be used for advertising and/or promotional purposes. Chicken Guy also has the right to reinstate any fund under the same terms and conditions with 30 days' prior written notice to the franchisee.
Additionally, Chicken Guy can defer or waive advertising fees, in whole or in part, upon the written request of any franchised or company restaurants if unique, objective circumstances justify such action in Chicken Guy's judgment. This provides a mechanism for franchisees facing hardship to potentially reduce or eliminate their advertising fee obligations, although the decision rests solely with Chicken Guy.