Under the Chicken Guy franchise agreement, when does a notice become effective?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy shall have the right, in its sole discretion, to reduce the scope of any covenant in this Section 12 effective immediately upon Developer's receipt of written notice, and Developer agrees that it shall comply forthwith with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions of Section 20.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
The 2025 Chicken Guy Franchise Disclosure Document states that Chicken Guy has the right to reduce the scope of any covenant effective immediately upon the developer's receipt of written notice. The developer must comply with any covenant as modified, which will be fully enforceable, notwithstanding the provisions of Section 20.
This means that Chicken Guy can change the requirements of certain agreements, and those changes take effect as soon as the franchisee receives written notice. This could impact the franchisee's obligations and operations, so it's important to understand what those covenants are and how they might be modified.
This immediate effectiveness of notice is a key point for potential Chicken Guy franchisees. It means they need to be prepared to adapt quickly to changes communicated by the franchisor. Franchisees should carefully review Section 20 of the franchise agreement to understand what provisions might be affected by such modifications.