Are provisions that restrict the right to a jury trial enforceable for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
9. Waiver of Jury Trial. The second sentence of Section 31.G. is deleted and replaced with the following sentence:
SUBJECT TO THE PARTIES' ARBITRATION OBLIGATIONS, FRANCHISEE AND CHICKEN GUY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO BRING, OR BE A CLASS MEMBER IN, ANY CLASS ACTION SUITS.
7. Choice of Venue. The following sentences are added to the end of Sections 31.C.-D.:
Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota. In addition, nothing in the disclosure document or agreements can abrogate or reduce any of Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
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 contain a choice of forum provision. This provision may not be enforceable under California law.
2. Any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable.
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- 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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the enforceability of jury trial waivers depends on the franchisee's location. For instance, the standard agreement includes a waiver of jury trial, but this is explicitly modified by addenda for certain states.
For franchisees in Minnesota, the FDD states that Chicken Guy and the franchisee waive the right to bring or be a class member in any class action suits, subject to arbitration obligations, to the fullest extent permitted by law. The disclosure notes that Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota. The FDD also specifies that nothing in the disclosure document or agreements can reduce any of Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
For Chicken Guy franchisees in California, the FDD indicates that certain provisions in the franchise agreement, including choice of forum provisions, may not be enforceable under California law. Similarly, for franchisees in New York, any provision inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable. For franchisees in Illinois, 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.
Prospective franchisees should consult with legal counsel to understand the specific implications of these provisions in their state and how they affect their rights.