Which state's law governs the Chicken Guy Franchise 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 Franchise 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.
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 Franchise Agreement is generally governed by Illinois law. Specifically, Item 17 of the FDD states that Illinois law governs the Franchise Agreement. However, this is subject to certain stipulations and addenda, particularly if the franchisee is based in or the restaurant is located in a different state.
For franchisees in states like Maryland and New York, addenda to the franchise agreement specify that the franchise laws of those states will govern any claims arising under their respective franchise registration and disclosure laws, regardless of what the general agreement says. This means that while Illinois law provides the overarching framework, certain aspects of the franchise relationship will be subject to the specific laws of the franchisee's state, offering additional protection and recourse under those local laws.
Furthermore, the FDD notes specific protections for franchisees in Minnesota, ensuring that the franchisor complies with Minnesota law regarding termination and non-renewal notices. These state-specific addenda highlight the importance of franchisees understanding not only the general terms of the Chicken Guy Franchise Agreement but also any state-specific provisions that may apply to their situation. Prospective franchisees should carefully review any addenda applicable to their state and consult with legal counsel to fully understand their rights and obligations.