factual

Which sections of the Chicken Guy Franchise Agreement are modified by the addition of a sentence as described in this Addendum?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

t. This Addendum is being executed because: (A) the offer or sale of a franchise to Franchisee was made in the State of New York; (B) Franchisee is a resident of the State of New York; 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 New York.

  • 2. Any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable.
  • 3. The following sentence is added to the end of Sections 2.B.(2)(e), 19.B.(5) and 20:

Any provision in this Agreement requiring Franchisee to sign a general release of claims against Chicken Guy does not release any claim Franchisee may have under New York General Business Law, Article 33, Sections 680-695.

4. The following sentence is added to Section 18:

Chicken Guy will not assign its rights under this Agreement, except to an assignee who in Chicken Guy's good faith and judgment is willing and able to assume Chicken Guy's obligations under this Agreement.

5. The following sentence is added to the end of Sections 21.B.(1) and 32.E.:

Chicken Guy's right to obtain injunctive relief exists only after proper proofs are made and the appropriate authority has granted such relief.

6. The following sentence is added to the end of Section 31.A.:

Notwithstanding the foregoing, the New York Franchises Law shall govern any claim arising under that law.

7. 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 NORTH DAKOTA

ADDENDUM TO THE CHICKEN GUY! RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR NORTH DAKOTA DEVELOPERS

This Addendum to the Chicken Guy! Restaurant Development Agreement dated
("Development Agreement") between Chicken Guy (Franchisor), LLC ("Chicken
Guy") and simultaneously with the execution of the Development Agreement. ("Developer") is entered into
  • 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 North Dakota; (B) Developer is a resident of the State of North Dakota; and/or (C) part or all of the Development Territory is located in the State of North Dakota.
  • 2. Development Fee. The following language is added to the end of Section 4 of the Development Agreement:

Pursuant to an order by the North Dakota Securities Department, Chicken Guy has posted a surety bond in the amount of $50,000.

3. Releases. The following sentence is added to the end of Sections 10.B.(5) and 11:

Any release required as a condition of renewal, sale and/or assignment/transfer will not apply to the extent prohibited by the North Dakota Franchise Investment Law.

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 sections of the Franchise Agreement that are modified by adding a sentence depend on the state where the franchise is offered or sold, where the franchisee resides, or where the restaurant or protected area is located. For franchisees in New York, a sentence is added to the end of Sections 2.B.(2)(e), 19.B.(5), and 20, clarifying that any general release of claims does not waive rights under New York General Business Law, Article 33, Sections 680-695. Additionally, a sentence is added to Section 18, specifying conditions under which Chicken Guy can assign its rights, and to Sections 21.B.(1) and 32.E, regarding Chicken Guy's right to obtain injunctive relief. Section 31.A also receives an added sentence stating that the New York Franchises Law governs any claim arising under that law.

For franchisees in Maryland, a sentence is added to the end of Sections 2.B.(2)(e), 19.B.(5), and 20, stating that the release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. A sentence is added to Section 31.C, noting that the Maryland Franchise Registration and Disclosure Law governs any claim arising under that Law. A sentence is added to Section 31.D, stating that the Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and a sentence is added to Section 31.I, stating that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.

For franchisees in Minnesota, a sentence is added to the end of Sections 2.B.(2)(e), 19.B.(5) and 20, clarifying that the franchisee will not be required to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 - 80C.22. Additionally, for developers in Minnesota, Section 12.B.(1)(i) is deleted and replaced with a statement regarding the developer's use or duplication of the System, Section 13.A has a sentence added regarding compliance with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5, and Sections 22.C-D. have sentences added regarding Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J.

These modifications ensure compliance with state-specific franchise laws and protect the franchisee's rights under those laws. Prospective franchisees should carefully review the addendum applicable to their state to understand how the standard Chicken Guy franchise agreement is modified to comply with local regulations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.