What is the relationship between the Washington Addendum and the Chicken Guy Franchise Disclosure Document?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
tion). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provision contained in the franchise agreement or elsewhere that conflicts with these limitations is void and unenforceable in Washington.
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- Nonsolicitation Agreements. RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
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- Questionnaires and Acknowledgments. 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.
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- Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
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- Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchi
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 Washington Addendum modifies the franchise agreement for franchisees in Washington state. The addendum addresses specific legal requirements and protections for franchisees under Washington law.
Specifically, the Washington Addendum ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under Washington franchise law, including claims of fraud. It also clarifies that any provisions in the franchise agreement that prohibit a franchisee from communicating with regulators are void and unenforceable in Washington. The addendum advises franchisees to carefully evaluate information provided by franchise brokers, who represent the franchisor for a fee.
Furthermore, Chicken Guy is required to maintain a surety bond of $100,000, contingent upon meeting certain conditions, such as all Washington franchisees receiving initial training and being open for business, or until the Administrator issues written authorization to the contrary. Except as expressly modified by the Addendum, the Franchise Agreement remains unmodified and in full force and effect.
Prospective Chicken Guy franchisees in Washington should carefully review the Washington Addendum in conjunction with the Franchise Agreement to understand their rights and obligations under Washington law. This ensures compliance with state regulations and protects the franchisee's interests.