Under what circumstances is the Chicken Guy Addendum to the Restaurant Development Agreement executed?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
- 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.
- 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 South Dakota; (B) Developer is a resident of the State of South Dakota; and/or (C) part or all of the Development Territory is located in the State of South Dakota.
- 2. The following language is added to the end of Section 4 of the Development Agreement:
Pursuant to an order by the South Dakota Securities Regulation Office, Chicken Guy has posted a surety bond in the amount of $50,000.
ADDENDUM TO THE CHICKEN GUY! RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR MARYLAND FRANCHISEES
ADDENDUM TO THE CHICKEN GUY! RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR ILLINOIS DEVELOPERS
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 Restaurant Development Agreement is executed under specific circumstances related to the location and residency of the developer. For California, the addendum is executed if the offer or sale of the franchise was made in California, the developer is a resident of California, or part or all of the development territory is located in California. Similarly, for South Dakota, the addendum is executed if the offer or sale of a franchise to the Developer was made in the State of South Dakota; the Developer is a resident of the State of South Dakota; and/or part or all of the Development Territory is located in the State of South Dakota.
These addenda ensure that Chicken Guy franchises comply with state-specific franchise laws and regulations. For instance, the South Dakota addendum mentions a surety bond of $50,000 that Chicken Guy has posted, as required by the South Dakota Securities Regulation Office. These state-specific addenda modify the Development Agreement to incorporate these legal requirements.
For a prospective Chicken Guy franchisee, this means that the terms of their franchise agreement can vary depending on the state in which they are located or reside. It is important to carefully review any addenda applicable to their state to understand any specific obligations, rights, or modifications to the standard Development Agreement. The FDD also includes addenda for Illinois, Maryland and New York.