How does the Rhode Island Addendum affect the rest of the Chicken Guy Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
- 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Franchisee was made in the State of Rhode Island; (B) Franchisee is a resident of the State of Rhode Island; and/or (C) the Franchised Restaurant will be located and/or operated, and/or all or part of the Protected Area will be located, in the State of Rhode Island.
- 2. The following language is added to Section 31.D:
- Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
- 3. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect. This Addendum may be executed in multiple counterparts, each of which when executed and delivered shall be deemed an original and all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Addendum by facsimile and any other electronic transmission (including PDF) shall be as effective as delivery of a manually executed counterpart of this Addendum.
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 Rhode Island Addendum becomes an integral part of the Franchise Agreement. This addendum is required if the franchise offer or sale was made in Rhode Island, if the franchisee is a Rhode Island resident, or if the franchised restaurant or its protected area is located in Rhode Island.
The Rhode Island Addendum modifies the Franchise Agreement by adding language to Section 31.D, referencing Section 19-28.1-14 of the Rhode Island Franchise Investment Act. This act stipulates that any franchise agreement provision that restricts jurisdiction or venue to a location outside of Rhode Island or requires the application of laws from another state is void concerning claims enforceable under this Act. This ensures that Rhode Island franchisees have the right to resolve disputes within their own state under Rhode Island law.
The addendum clarifies that any capitalized terms not defined within the addendum itself will have the same meaning as defined in the original Franchise Agreement. Furthermore, the addendum explicitly states that, unless specifically modified by the addendum, the original Franchise Agreement remains in full effect. This means that all other terms and conditions of the Franchise Agreement continue to apply, except for the specific modifications outlined in the Rhode Island Addendum. The addendum also allows for execution in multiple counterparts and confirms that electronic transmission of signature pages is as effective as physical delivery.