Under what circumstances is the Chicken Guy Addendum to the 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 Chicken Guy's 2025 Franchise Disclosure Document, the Addendum to the Franchise Agreement is executed under specific circumstances related to the franchisee's location or residency, or where the franchise sale occurred. Specifically, the addendum is executed if the offer or sale of the franchise was made in a particular state, if the franchisee is a resident of that state, or if the franchised restaurant or its protected area will be located or operated in that state. These states include California, South Dakota, New York, Minnesota, and Rhode Island.
For instance, if a prospective Chicken Guy franchisee resides in California, the California addendum is integrated into their Franchise Agreement. Similarly, if the franchise is offered or sold in South Dakota, or if the restaurant will operate in South Dakota, the South Dakota addendum applies. This ensures that the franchise agreement complies with the specific franchise laws of these states.
These addenda also address specific legal requirements and protections for franchisees within those states. For example, the New York addendum clarifies that certain provisions in the Franchise Agreement must comply with New York General Business Law. 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. These addenda modify the standard franchise agreement to align with state-specific regulations, providing additional clarity and legal protection for franchisees operating in those areas.
Prospective Chicken Guy franchisees should carefully review any addenda applicable to their situation to understand their rights and obligations under the franchise agreement, as modified by state law. Understanding these state-specific modifications is crucial for a successful and legally compliant franchise operation.