Under what circumstances is the Chicken Guy Addendum to the Restaurant Development Agreement required for developers?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------------------------|----|-----------|-------| | | | | | | | | | ("Development Agreement") between Chicken Guy (Franchisor), LLC ("Chicken | | | | | Guy") | and | simultaneously with the execution of the Development Agreement. | | | | | | ("Developer") | is | entered | into |
- 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
| This | Addendum | to | the | Chicken | Guy! | Restaurant | Franchise | Agreement | dated |
|---|---|---|---|---|---|---|---|---|---|
| ("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.
[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: 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 the 2025 Chicken Guy FDD, an addendum to the Restaurant Development Agreement is required for developers in specific circumstances related to the location and legal jurisdiction of the franchise. For California, the addendum is required if the offer or sale of the franchise was made in California, if the developer is a resident of California, or if part or all of the development territory is located in California. Similarly, for Rhode Island, the addendum is required if the offer or sale of a franchise to the developer was made in the State of Rhode Island, if the developer is a resident of Rhode Island, and/or if part or all of the Development Territory is located in the State of Rhode Island. For South Dakota, the addendum is required if the offer or sale of a franchise to the developer was made in the State of South Dakota, if the developer is a resident of the State of South Dakota, and/or if 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 Rhode Island addendum includes a clause stating that any provision in the franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. The South Dakota addendum mentions that Chicken Guy has posted a surety bond in the amount of $50,000 pursuant to an order by the South Dakota Securities Regulation Office.
For a prospective Chicken Guy franchisee, this means that the specific terms and conditions of their Development Agreement may vary depending on the state in which they are developing their franchise. It is important for developers to carefully review any addenda to understand their rights and obligations under the laws of their state. These addenda are designed to protect franchisees and ensure compliance with local regulations, but franchisees must be aware of the specific provisions that apply to them.