How Raising Cane's Ended Up in a Space Where It Was Legally Prohibited From Selling Its Primary Menu Item

A Hobard, Indiana landlord failed to disclose a chicken ban when Raising Cane’s signed a long-term lease for a restaurant plot, complete with a drive-thru and patio seating.

“The provision barring it from selling chicken had been imposed, the fast-food chain said in court documents cited in a report by the Times of Northwest Indiana, by a non-compete agreement that the previous property owners has reached with a nearby McDonald’s in 1984,” Emily Heil wrote for The Washington Post.

Raising Cane’s claims it was enticed to sign a 15-year lease despite the fact that the landlord knew a Raising Cane’s restaurant could never, realistically, exist in the space. The landlord’s lawyer claims the franchise should have read the lease more closely and conducted a title search.

The franchise is moving to have the lease voided and is asking for repayment to cover the work that was done to develop the site thus far. Still, the landlord holds that Cane’s is responsible since it did sign the lease.

While the case will likely move through court proceedings, it is a prime example of the importance of deep due diligence and the need for a diverse team of experts when developing a franchise location.