For Maryland developers, when are the development fees and initial payments owed to Chicken Guy due?

According to Chicken Guy's 2025 Franchise Disclosure Document, the Maryland Securities Commissioner requires a financial assurance based on Chicken Guy's financial condition. As a result, the development fees and initial payments owed by developers in Maryland are deferred. These fees and payments are not due until the first Chicken Guy restaurant under the Development Agreement actually opens for business. This deferral is specifically designed to protect the financial interests of franchisees and developers in Maryland, given the franchisor's financial situation.

This condition is outlined in an addendum to the Development Agreement that is required for Maryland developers. This addendum ensures that certain protections under Maryland's franchise laws are maintained. For example, any releases signed by the developer do not waive rights under the Maryland Franchise Registration and Disclosure Law. Similarly, while the Development Agreement may specify that Florida law governs the agreement, the Maryland Franchise Registration and Disclosure Law will govern any claims arising under that law within Maryland.

Furthermore, the addendum clarifies that developers can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of any venue clauses in the standard agreement. The statute of limitations for claims under Maryland franchise law is three years from the grant of the franchise. These provisions collectively ensure that Maryland developers have specific legal protections and recourse within their own state, despite the standard terms of the Chicken Guy Development Agreement.