What is the geographic limit for bringing an action or proceeding related to the sale of a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, you may bring an action in North Dakota for claims arising under the North Dakota Franchise Investment Law.
Notwithstanding the foregoing, Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota.
Notwithstanding the foregoing, the New York Franchises Law shall govern any claim arising under that 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 franchise agreement stipulates that franchisees may be required to litigate disputes in specific states depending on where the franchise was sold or will be operated. For instance, franchisees in Maryland can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Similarly, franchisees in North Dakota may bring an action in North Dakota for claims arising under the North Dakota Franchise Investment Law.
For franchisees in Minnesota, the FDD indicates that Chicken Guy cannot require litigation to be conducted outside of Minnesota, as per Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J. The disclosure also states that the New York Franchises Law shall govern any claim arising under that law for franchisees in New York.
For prospective franchisees, these stipulations mean that their legal rights and the venues available for dispute resolution can vary significantly based on the state where they are offered the franchise, where they reside, or where their Chicken Guy restaurant will be located. It is important to carefully review the addendum specific to their state to understand the specific legal protections and limitations that apply.