Under what circumstances is the Addendum to 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.
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 the offer or sale of the franchise was made in a specific state, when the franchisee is a resident of a specific state, or when the franchised restaurant or its protected area is located in a specific state. These states include California, South Dakota, Minnesota, Rhode Island, and New York.
For instance, if the offer or sale of a Chicken Guy franchise was made in California, if the franchisee is a resident of California, or if the franchised restaurant will be located in California, then the Addendum is executed. Similarly, addenda are required for franchisees in South Dakota, Minnesota, Rhode Island, and New York under the same conditions. These addenda ensure that the franchise agreement complies with the specific franchise laws of these states.
This requirement ensures that Chicken Guy franchisees receive the protections and disclosures mandated by their state's franchise laws. It also allows for modifications to the standard franchise agreement to comply with state-specific regulations. For example, the South Dakota addendum mentions that Chicken Guy has posted a surety bond of $50,000 pursuant to an order by the South Dakota Securities Regulation Office. Similarly, the New York addendum clarifies that any provision inconsistent with New York General Business Law may not be enforceable and that Chicken Guy's right to injunctive relief exists only after proper proofs are made and the appropriate authority has granted such relief.
Prospective Chicken Guy franchisees should pay close attention to whether an addendum is required for their specific situation, as it will modify the standard franchise agreement and provide important legal protections and disclosures specific to their state. Understanding these state-specific requirements is crucial for a successful and compliant franchise operation.