factual

In the event of a conflict of laws, which state's laws will prevail for a Chicken Guy franchise?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

PROVISION SECTION IN FRANCHISE AGREEMENT SUMMARY
w. Choice of law Section 31.C. Subject to state law, Florida law applies.
PROVISION SECTION IN DEVELOPMENT AGREEMENT SUMMARY
w. Choice of law Section 22.C. Subject to state law, Florida law applies.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)

What This Means (2025 FDD)

According to the 2025 Chicken Guy FDD, the choice of law depends on the specific agreement (Franchise Agreement vs. Development Agreement) and the state where the franchisee is located. For the standard Franchise Agreement, Florida law applies, subject to state law. This means that while the agreement itself is generally governed by Florida law, specific state laws where the franchise operates can override certain provisions. For instance, Minnesota law prohibits Chicken Guy from requiring litigation to be conducted outside of Minnesota and ensures that the franchisee's rights under Minnesota Statutes, Chapter 80C, are protected. Similarly, New York law takes precedence if the franchise is offered or sold in New York, the franchisee is a resident of New York, or the restaurant is located in New York. Illinois law also governs the Franchise Agreement for Illinois franchisees. Maryland law dictates that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.

For the Development Agreement, Illinois law governs, and for all developers, Florida law applies. This is subject to state law, meaning that the specific state laws where the developer operates can override certain provisions. For instance, Minnesota law prohibits Chicken Guy from requiring litigation to be conducted outside of Minnesota and ensures that the developer's rights under Minnesota Statutes, Chapter 80C, are protected. Similarly, New York law takes precedence if the franchise is offered or sold in New York, the franchisee is a resident of New York, or the restaurant is located in New York. Illinois law also governs the Development Agreement for Illinois developers. Maryland law dictates that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.

This multi-layered approach ensures that franchisees and developers are protected by their local state laws, even when the overarching agreement specifies a different governing law. Prospective franchisees should be aware of the specific state laws that apply to them and how those laws might affect the terms of their Franchise Agreement or Development Agreement with Chicken Guy. It is important to consult with a legal professional to understand the full scope of these protections and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.