Which section of the Chicken Guy Franchise Agreement is modified by the South Dakota Addendum?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
e:
ADDENDUM TO THE CHICKEN GUY! RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR SOUTH DAKOTA FRANCHISEES
| This | Addendum | to | the | Chicken | Guy! | Restaurant | Franchise | Agreement | dated | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ("Franchise Agreement") between Chicken Guy (Franchisor), LLC ("Chicken Guy") and ("Franchisee") is entered | ||||||||||||
| into simultaneously with the execution of the Franchise Agreement. |
- 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 South Dakota; (B) Franchisee is a resident of the State of South Dakota; 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 South Dakota.
- 2. The following language is added to the end of Section 7. A. of the Franchise 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.
*
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 South Dakota Addendum modifies Section 7. A of the Franchise Agreement. Specifically, the addendum adds language to the end of this section. This modification is required because the franchise offer or sale was made in South Dakota, the franchisee is a resident of South Dakota, or the franchised restaurant will be located or operated in South Dakota.
The added language stipulates that Chicken Guy has posted a surety bond of $50,000, as ordered by the South Dakota Securities Regulation Office. This bond likely serves as a form of financial protection for franchisees in the event that Chicken Guy fails to meet its obligations under the franchise agreement.
It is important to note that the addendum explicitly states that any terms not defined within the addendum itself will have the same meaning as defined in the Franchise Agreement. Furthermore, except for the specific modification detailed in the addendum, the Franchise Agreement remains in full force and effect. This ensures that the core terms of the agreement are upheld while addressing specific regulatory requirements in South Dakota.