Under what circumstances is the Addendum to the Chicken Guy! Restaurant Development Agreement required for California developers executed?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
[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.
- 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 Development Agreement. Except as expressly modified by this Addendum, the Development 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.
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
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: DEVELOPER: Print Name:
ADDENDUM TO THE CHICKEN GUY! RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR CALIFORNIA FRANCHISEES
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 Restaurant Development Agreement for California developers is required under specific circumstances. This addendum becomes an integral part of the Development Agreement when (A) the offer or sale of a franchise to the Developer was made in California, (B) the Developer is a resident of California, or (C) part or all of the Development Territory is located in California.
This addendum ensures that California-specific franchise laws are upheld, providing additional protection to the Chicken Guy developer. It prevents any signed statements or acknowledgments from waiving claims under California franchise law, including those related to fraud in the inducement, or disclaiming reliance on statements made by Chicken Guy or its representatives. This safeguards the developer's rights and ensures compliance with California's franchise regulations.
For a prospective Chicken Guy developer in California, this means that the addendum reinforces their legal rights and protections under California franchise law. It overrides any conflicting terms in other documents, ensuring that the developer cannot inadvertently waive their rights. This offers a level of security and clarity, particularly regarding potential disputes or claims related to the franchise agreement. The developer should carefully review this addendum with their legal counsel to fully understand its implications and how it affects their rights and obligations under the Development Agreement.