Are there any exceptions to the modification clause in the Chicken Guy Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| s. Modification of the | Section 20 | No modification generally without signed | | agreement | | agreement, but we may modify the System. | | t. Integration/merger clause | Section 20 | Only the terms of the Development Agreement are binding (subject to state law). Any representations or promises made outside this disclosure document and the Development Agreement may not be enforceable. |
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning transfer, termination or non-renewal of the franchise and development agreements. If the agreements contain a provision that is inconsistent with the law, the law will control.
Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota.
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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the modification clause in Section 20 of the Development Agreement generally requires a signed agreement for any modifications. However, Chicken Guy retains the right to modify the System itself.
Notably, the FDD includes addenda for franchisees in specific states like California, Minnesota, Maryland and New York, which introduce exceptions and stipulations based on state laws. For instance, California law may supersede certain provisions related to choice of law, choice of forum, non-compete covenants, liquidated damages, and waivers. Similarly, Minnesota law affects requirements for termination and non-renewal notices, and prohibits requiring litigation to be conducted outside of Minnesota. Maryland law prohibits requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise.
These state-specific addenda highlight that certain aspects of the Franchise Agreement may be unenforceable or subject to modification based on local regulations. Prospective franchisees should carefully review the addendum applicable to their state of residence or the state in which their franchised restaurant will be located to understand the specific exceptions and modifications to the standard Chicken Guy Franchise Agreement.