What law governs the Chicken Guy Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
-------|-----------|---------------------------------------------------------------|-------| | | | | | | | | | ("Franchise Agreement") between Chicken Guy (Franchisor), LLC | | | ("Chicken | Guy") | and | | | | | | | | | ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. | | | | | | | | | |
-
- Illinois law governs the Franchise Agreement.
-
- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
-
- Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
-
- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
-
- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee 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 any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[Signatures follow on next page.]
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the day and year first above written.
CHICKEN GUY (FRANCHISOR), LLC
Print Name: Print Name: ADDENDA REQUIRED BY THE STATE OF MARYLAND
ADDENDUM TO THE CHICKEN GUY! RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR MARYLAND DEVELOPERS
| This | Addendum | to | the | Chicken | Guy!
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 laws governing the Franchise Agreement depend on the franchisee's location. For franchisees in Illinois, the agreement is governed by Illinois law, as stated in the addendum required for Illinois franchisees. Similarly, for franchisees in Maryland and New York, the Maryland Franchise Registration and Disclosure Law and the New York General Business Law, Article 33, Sections 680 – 695, respectively, govern claims arising under those laws. For franchisees in Minnesota, the Franchise Agreement is governed by Minnesota law.
This means that the specific legal rights and obligations of a Chicken Guy franchisee can vary significantly based on the state in which they operate. For example, certain provisions in the standard Franchise Agreement may not be enforceable if they conflict with state laws regarding franchise relationships, termination, non-renewal, or waivers of rights.
Prospective Chicken Guy franchisees should carefully review the addendum specific to their state of residence or the state in which their restaurant will be located. They should also consult with an attorney experienced in franchise law to understand how these state-specific provisions affect their rights and responsibilities under the Franchise Agreement. This is particularly important in states like California, where several standard franchise agreement provisions, such as those related to choice of law, choice of forum, non-compete covenants, and liquidated damages, may not be enforceable under California law.