Under what circumstances is the Addendum mentioned in this section executed for a Chicken Guy franchise?

According to the 2025 Chicken Guy 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 is offered or sold. Specifically, the addendum is integrated into the Franchise Agreement if (A) the offer or sale of a franchise to the Franchisee was made in a particular state, such as New York, Minnesota, Maryland, or Rhode Island; (B) the Franchisee is a resident of one of those 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 those states.

This means that Chicken Guy uses state-specific addenda to ensure compliance with local franchise laws. These addenda modify certain provisions of the standard franchise agreement to align with the legal requirements of the specific state. For example, the New York addendum addresses issues related to the New York General Business Law, while the Maryland addendum addresses financial assurances required by the Maryland Securities Commissioner and liabilities under the Maryland Franchise Registration and Disclosure Law. The Minnesota addendum includes clauses about releases, non-renewal, indemnification, and injunctive relief, ensuring adherence to Minnesota Statutes.

For a prospective Chicken Guy franchisee, this implies that the terms of their franchise agreement may vary depending on the state in which they reside or operate their restaurant. It is crucial for franchisees to carefully review the addendum applicable to their state to understand any modifications to the standard franchise agreement. This ensures they are aware of their rights and obligations under local laws, and that Chicken Guy is also compliant with those local laws. The presence of these addenda demonstrates Chicken Guy's effort to comply with varying state franchise regulations, which can provide a level of assurance to franchisees.