Does a Chicken Guy franchisee have the right to terminate the Franchise Agreement?
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.
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 specific conditions under which a franchisee can terminate the Franchise Agreement are not detailed in the provided excerpts, except for references to Minnesota law. For franchisees operating under Minnesota law, Chicken Guy must comply with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5, which generally requires the franchisee to be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of franchise agreements, except in certain cases.
For franchisees in California, the FDD mentions that California Business and Professions Code Sections 20000 through 20043 provide rights concerning the termination of the franchise and development agreements, and if the agreements contain a provision inconsistent with the law, the law will control. The FDD also notes that franchise and development agreements provide for termination upon bankruptcy, but these provisions may not be enforceable under federal bankruptcy law.
For franchisees in Illinois, the FDD states that the franchisee's rights upon termination and non-renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. Prospective franchisees should carefully review the full franchise agreement and relevant state laws to fully understand their termination rights. It would be prudent for a potential franchisee to seek clarification from Chicken Guy regarding all conditions under which they can terminate the Franchise Agreement, as well as consult with a legal professional.