Which state's law governs the Chicken Guy Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
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- Illinois law governs the Development Agreement.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- 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.
[Signatures follow on next page.]
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: DEVELOPER: Print Name:
ADDENDUM TO THE CHICKEN GUY! RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR ILLINOIS FRANCHISEES
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, the Development Agreement is governed by Illinois law for franchisees in Illinois. The FDD also states that for franchisees in California, the franchise and development agreements provide for the application of Florida law, but this provision may not be enforceable under California law. For franchisees in Minnesota, the FDD includes an addendum that modifies certain sections of the Development Agreement to comply with Minnesota law. Finally, for franchisees in Florida, Florida law applies to the Development Agreement, subject to state law.
For Illinois franchisees, the FDD specifies that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. It also confirms that franchisees cannot waive compliance with Illinois franchise laws.
For California franchisees, the FDD notes that several provisions, including those related to choice of law, choice of forum, non-compete covenants, liquidated damages, and general releases, may not be enforceable under California law. This suggests that California law will take precedence over conflicting terms in the agreements.
For Minnesota franchisees, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota. In addition, nothing in the disclosure document or agreements can abrogate or reduce any of Developer's rights as provided for in Minnesota Statutes, Chapter 80C, or Developer's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
For Florida franchisees, the FDD states that Florida law applies to the Development Agreement, subject to state law.