Which section of the Chicken Guy Franchise Agreement is modified by the language added in this Addendum?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
rated 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 Maryland; (B) Franchisee is a resident of the State of Maryland; 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 Maryland.
- 2. Fees. The following language is added to the end of Section 7. A. of the Franchise Agreement:
Based upon Chicken Guy's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by Franchisee shall be deferred until Chicken Guy completes its pre-opening obligations under this Agreement.
3. Releases. The following sentence is added to the end of Sections 2.B.(2)(e), 19.B.(5) and 20:
This release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
4. Choice of Law. The following sentence is added to the end of Section 31.C:
Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall govern any claim arising under that Law.
5. Choice of Venue. The following sentence is added to the end of Section 31.D.:
Notwithstanding the foregoing, Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
6. Statute of Limitations. The following sentence is added to the end of Section 31.I.:
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
7. Representations. The following sentence is added to the end of Section 33:
Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. Representations in this Agreement are not intended to, nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
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.
8. Miscellaneous. 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.
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the day and year first above written.
CHICKEN GUY (FRANCHISOR), LLC
Print Name: Print Name: ADDENDA REQUIRED BY THE STATE OF MINNESOTA
ADDENDUM TO THE CHICKEN GUY! RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR MINNESOTA DEVELOPERS
| This | Addendum | to | the | Chicken | Guy!
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 modifies multiple sections of the franchise agreement depending on the state where the franchise is located. For Maryland, the addendum adds language to the end of Section 7.A, Sections 2.B.(2)(e), 19.B.(5), 20, 31.C, 31.D, 31.I, and 33 of the Franchise Agreement. For South Dakota, the addendum adds language to the end of Section 7.A of the Franchise Agreement. For New York, the addendum adds language to the end of Sections 2.B.(2)(e), 19.B.(5), 20, 18, 21.B.(1), 32.E, and 31.A of the Franchise Agreement. For Rhode Island, the addendum adds language to Section 31.D of the Franchise Agreement. For Minnesota, the addendum adds language to the end of Sections 2.B, 15, and replaces Section 21.B.(1)(i).
These modifications address specific legal requirements within each state, such as financial assurances, releases, choice of law and venue, statutes of limitations, and franchisee representations. For example, the Maryland addendum addresses financial assurances required by the Maryland Securities Commissioner, deferring initial fees until Chicken Guy fulfills its pre-opening obligations. The New York addendum ensures that franchisees do not waive claims under New York franchise law. The South Dakota addendum mentions a surety bond of $50,000 posted by Chicken Guy. The Rhode Island addendum addresses restrictions on jurisdiction or venue outside of the state. The Minnesota addendum addresses non-renewal and indemnification.
Prospective franchisees should carefully review the addendum specific to their state to understand how it modifies the original franchise agreement. These modifications are crucial for understanding their rights and obligations under the franchise agreement within the context of their state's laws. It is also important to note that the addendum explicitly states that any terms not defined within it will have the same meaning as in the original Franchise Agreement, and that the Franchise Agreement remains in full effect except as modified by the addendum.