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

According to the 2025 Chicken Guy Franchise Disclosure Document, the addendum to the Development Agreement is executed under specific circumstances related to the location and residency of the developer. The addendum is integrated into the Development Agreement when the offer or sale of the franchise was made in a specific state, the developer is a resident of that state, or part or all of the development territory is located in that state. These states include California, Maryland, Minnesota, New York, and South Dakota.

For instance, if the offer or sale of a Chicken Guy franchise was made in California, if the developer resides in California, or if the development territory includes California, an addendum specific to California is executed. This addendum modifies certain aspects of the standard Development Agreement to comply with California franchise laws. Similarly, addenda are required for Maryland, Minnesota, New York, and South Dakota, each addressing specific legal requirements and protections within those states.

These addenda often include provisions that modify the standard agreement to comply with state-specific franchise laws. For example, the Maryland addendum addresses financial assurance requirements and defers development fees until the first restaurant opens. The Minnesota addendum ensures compliance with Minnesota statutes regarding termination and non-renewal notices. The South Dakota addendum mentions a surety bond posted by Chicken Guy. The New York addendum clarifies that New York franchise law governs claims arising under that law.

Prospective Chicken Guy developers should carefully review the addendum applicable to their state, as it contains important modifications to the standard Development Agreement. Understanding these state-specific provisions is crucial for ensuring compliance with local laws and protecting their rights as franchisees. The presence of these addenda highlights the importance of seeking legal counsel to navigate the complexities of franchise agreements and state regulations.