In the event of a conflict of laws regarding the Chicken Guy franchise, which law will prevail?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
partment of Financial Protection and Innovation.
4. Item 17, Additional Disclosures. The following statements are added to Item 17:
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning transfer, termination or non-renewal of the franchise and development agreements. If the agreements contain a provision that is inconsistent with the law, the law will control.
The franchise and development agreements provide for termination upon bankruptcy. These provisions may not be enforceable under federal bankruptcy law (11 U.S.C.A. § 101, et seq.).
The franchise and development agreements provide for application of the laws of Florida. This provision may not be enforceable under California law.
The franchise and development agreements contain a choice of forum provision. This provision may not be enforceable under California law.
The franchise and development agreements contain a covenant not to compete that extends beyond the termination of the franchise. These provisions may not be enforceable under California law.
The franchise and development agreements contain liquidated damages clauses. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable.
You must sign a general release upon execution of the franchise and development agreements, if you transfer the rights granted under those agreements and if you renew your franchise under the franchise agreement. These provisions may not be enforceable under California law. California Corporations Code Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516). Business and Professions Code Section 21000 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
To obtain a liquor license in California, you must apply in-person with the State of California Department of Alcoholic Beverage Control, at your district office ("Department"). The Department will conduct an investigation, and you are responsible for posting a public notice and furnishing any additional notices or information requested by the Department. An application for a liquor license in California can take from 55 to 175 days or more to be approved, depending on the circumstances. For more information, please visit https://www.abc.ca.gov/ or call the Department at 916.419.2500.
5. Item 22, Additional Disclosure. The following statements are added to Item 22:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Registration of this franchise does not constitute approval, recommendation, or endorsement by the Commissioner of the Department of Financial Protection and Innovation.
ADDITIONAL DISCLOSURES REQUIRED BY THE STATE OF HAWAII
**THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the governing law in the event of a conflict depends on the franchisee's location. For franchisees in California, if any provision in the franchise or development agreements is inconsistent with California law, then California law will prevail. This specifically applies to provisions concerning transfer, termination, or non-renewal of the agreements, as well as covenants not to compete, liquidated damages clauses, and general releases. Similarly, for franchisees in New York, any provision inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable, and the New York Franchises Law will govern any claim arising under that law. For Illinois franchisees, Illinois law governs the Franchise Agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state.
For franchisees in Maryland, the FDD includes an addendum to the Restaurant Development Agreement. For franchisees in North Dakota, North Dakota law will apply to claims arising under the North Dakota Franchise Investment Law, and franchisees may bring actions in North Dakota for these claims. Additionally, certain waivers of damages and rights, as well as statute of limitations, are subject to North Dakota law. For Rhode Island developers, the FDD includes an addendum to the Restaurant Development Agreement.
For franchisees in Minnesota, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota. The disclosure document and agreements cannot reduce any of Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.