Under what circumstances is the Addendum to the Chicken Guy Development Agreement executed?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------------------------|----|-----------|-------| | | | | | | | | | ("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 California; (B) Developer is a resident of the State of California; and/or (C) part or all of the Development Territory is 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 Development Agreement. Except as expressly modified by this Addendum, the Development 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: DEVELOPER: Print Name:
ADDENDUM TO THE CHICKEN GUY! RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR CALIFORNIA FRANCHISEES
| This | Addendum | to | the | Chicken | Guy! | Restaurant | Franchise | Agreement | dated |
|---|---|---|---|---|---|---|---|---|---|
| ("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! | Restaurant | Development | Agreement | dated |
|---|---|---|---|---|---|---|---|---|---|
| ("Development Agreement") between Chicken Guy (Franchisor), LLC ("Chicken | |||||||||
| Guy") and ("Developer") is entered into | |||||||||
| simultaneously with the execution of the Development Agreement. |
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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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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 Chicken Guy Development Agreement is executed under specific circumstances related to the franchisee's location or residency. For instance, if the offer or sale of a franchise was made in a particular state, such as South Dakota, California, New York, or Minnesota, an addendum is required. Similarly, if the developer (franchisee) is a resident of one of these states, or if part or all of the development territory is located within these states, the addendum must be executed.
These addenda are designed to ensure compliance with state-specific franchise laws and regulations. For example, the South Dakota addendum mentions that Chicken Guy has posted a surety bond of $50,000, as required by the South Dakota Securities Regulation Office. The New York addendum clarifies that any provision in the Development Agreement inconsistent with New York General Business Law may not be enforceable and includes additional sentences to specific sections of the agreement to ensure compliance with New York law. The Minnesota addendum modifies clauses related to releases, injunctive relief, termination, and choice of venue to align with Minnesota statutes.
For a prospective Chicken Guy franchisee, this means that the specific terms and conditions of their franchise agreement may vary depending on the state in which they operate. It is crucial to carefully review any addenda applicable to their state to understand their rights and obligations fully. These addenda often address important legal considerations, such as waivers, releases, and dispute resolution processes, to ensure franchisees are protected under state law.
Therefore, franchisees should pay close attention to any state-specific addenda provided by Chicken Guy and consult with legal counsel to ensure they understand the implications of these addenda on their franchise agreement. This proactive approach will help franchisees navigate the legal landscape and operate their Chicken Guy franchise in compliance with all applicable laws and regulations.