Under what circumstances is the Addendum described in this section of the Chicken Guy Franchise Agreement executed?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------------------------------------------------|-------| | | | | | | | | | ("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 California; (B) Franchisee is a resident of the State of California; 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 California.
- 2. 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.
- 3. 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.
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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 ILLINOIS
ADDENDUM TO THE CHICKEN GUY! RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR ILLINOIS DEVELOPERS
| This | Addendum | to | the | Chicken | Guy!
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 Addendum to the Franchise Agreement is executed under specific circumstances related to the location and residency of the franchisee. The Addendum is incorporated into the Franchise Agreement when (A) the offer or sale of a franchise to the Franchisee was made in a specific state, such as New York, Minnesota, Rhode Island, California, South Dakota, or Maryland; (B) the Franchisee is a resident of one of these states; 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 one of these states. These addenda are required by the states of Illinois and Washington as well.
This means that if a prospective Chicken Guy franchisee lives in, or is purchasing a franchise to operate in, one of the states listed, they will be required to sign an addendum that modifies the standard Franchise Agreement to comply with that state's franchise laws. These modifications can cover a range of topics, including waivers, releases, non-renewal terms, indemnification, and dispute resolution. For example, the New York addendum specifies that any provision in the Franchise Agreement inconsistent with the New York General Business Law may not be enforceable.
For a prospective franchisee, this highlights the importance of carefully reviewing any state-specific addendum to understand how it alters the terms of the standard Chicken Guy Franchise Agreement. It also underscores the need to be aware of the franchise laws in the state where they reside or plan to operate a franchise, as these laws can significantly impact their rights and obligations. The addenda ensure that Chicken Guy complies with state-specific regulations, providing franchisees with certain protections and rights mandated by those states.