Under what circumstances is the Addendum to the Development Agreement executed for a Chicken Guy franchise?
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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- 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
| 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. |
-
- Illinois law governs the Franchise Agreement.
-
- 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.
-
- Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
-
- 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.
-
- 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: Print Name: ADDENDA REQUIRED BY THE STATE OF MARYLAND
ADDENDUM TO THE CHICKEN GUY! RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR MARYLAND DEVELOPERS
| This | Addendum | to | the | Chicken | Guy! | Restaurant | Development | Agreement | dated | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| between | Chicken | Guy | (Franchisor), | LLC | ("Chicken | Guy") | and | ||||
| ("Developer") | is | entered | into | ||||||||
| simultaneously with the execution of the Development Agreement. |
- 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 Maryland; (B) Developer is a resident of the State of Maryland; and/or (C) part or all of the Development Territory is located in the State of Maryland.
- 2. Development Fee. The following language is added to the end of Section 4 of the Development Agreement:
Based upon Chicken Guy's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all development fees and initial payments owed by Developer shall be deferred until the first Franchised Restaurant under this Agreement opens.
3. Releases. The following sentence is added to the end of Sections 10.B.(5) and 11:
This release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
4. Choice of Law. The following sentence is added to the end of Section 22.C.:
Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall govern any claim arising under that Law.
5. Choice of Venue. The following sentence is added to the end of Section 22.D.:
Notwithstanding the foregoing, Developer may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
6. Statute of Limitations. The following sentence is added to the end of Section 22.I.:
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
7. Representations. The following sentence is added to the end of Section 24:
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. Representations in this Agreement are not intended to, nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
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.
8. Miscellaneous. 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.
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 MARYLAND FRANCHISEES
| 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, an addendum to the Development Agreement is executed under specific circumstances related to the location and residency of the developer. The addendum is incorporated into the Development Agreement and is required when the offer or sale of a franchise is made in a specific state, when the developer is a resident of that state, or when part or all of the development territory is located in that state. These addenda modify the Development Agreement to comply with specific state laws.
For instance, an addendum is required for California, South Dakota, Minnesota, New York, and Rhode Island franchisees. For South Dakota, the addendum includes a clause that Chicken Guy has posted a surety bond in the amount of $50,000, pursuant to an order by the South Dakota Securities Regulation Office. For Minnesota, the addendum ensures that the developer's rights under Minnesota Statutes, Chapter 80C, are protected and that litigation cannot be required outside of Minnesota.
For New York, the addendum clarifies that any provision inconsistent with the New York General Business Law may not be enforceable and that any release of claims does not include claims under New York law. Similarly, for Rhode Island, the addendum specifies that any provision restricting jurisdiction or venue to a forum outside the state or requiring the application of other state laws is void under the Rhode Island Franchise Investment Act. These addenda ensure that Chicken Guy franchises comply with the specific legal requirements of each state, providing additional protections and disclosures to franchisees in those areas.
Prospective Chicken Guy franchisees should carefully review any state-specific addenda to understand their rights and obligations under the franchise agreement, as these addenda can significantly modify the terms of the standard Development Agreement. It is also important to note that the specific terms and conditions within these addenda can vary from state to state, reflecting the unique regulatory landscape of each jurisdiction.