What is the relationship between the Addendum and the Chicken Guy Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | Addendum | to | the | Chicken | Guy! | Restaurant | Development | Agreement | dated |
|---|---|---|---|---|---|---|---|---|---|
| ("Development Agreement") between Chicken Guy (Franchisor), LLC ("Chicken | |||||||||
| Guy") and ("Developer") is entered into | |||||||||
| simultaneously with the execution of the Development Agreement. |
- 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Developer was made in the State of South Dakota; (B) Developer is a resident of the State of South Dakota; and/or (C) part or all of the Development Territory is located in the State of South Dakota.
- 2. The following language is added to the end of Section 4 of the Development Agreement:
Pursuant to an order by the South Dakota Securities Regulation Office, Chicken Guy has posted a surety bond in the amount of $50,000.
3. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.
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 Addendum is designed to work in conjunction with the Development Agreement. Several excerpts from Item 17 clarify this relationship. The Addendum is considered an integral part of, and is incorporated into, the Development Agreement. This means that the terms and conditions outlined in both documents are intended to be read together as a single, cohesive agreement. The Addendum is executed simultaneously with the Development Agreement, further emphasizing their close relationship.
Capitalized terms that are not defined within the Addendum itself will carry the same meaning as defined in the Development Agreement. This ensures consistency and avoids confusion in interpreting the terms of the agreement. Except where explicitly modified by the Addendum, the original Development Agreement remains in full force and effect. This indicates that the Addendum serves to supplement or amend specific aspects of the Development Agreement, rather than replace it entirely.
For franchisees, this means that they must carefully review both the Development Agreement and the Addendum to fully understand their rights and obligations. The Addendum may contain provisions that modify or clarify certain sections of the Development Agreement, so it is crucial to understand how the two documents interact. In some cases, the Addendum is required based on where the franchise is offered or sold, the franchisee's residency, or the location of the development territory, as seen in the cases of California, South Dakota, New York and Minnesota.