Under what circumstances is the Chicken Guy California Franchise Agreement Addendum 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 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.
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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 California Franchise Agreement Addendum is executed under specific conditions related to the franchise's connection to the state of California. The addendum is incorporated into the Franchise Agreement and is triggered when (A) the offer or sale of a franchise is made in California, (B) the franchisee is a resident of California, or (C) the franchised restaurant will be located or operated in California, or if any part of the protected area is in California.
This addendum ensures that California franchisees are protected by California's franchise laws. It prevents franchisees from waiving rights or disclaiming reliance on statements made by the franchisor, franchise seller, or their representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement, strengthening the franchisee's legal standing within the state.
The California addendum also clarifies that any capitalized terms not defined within the addendum itself will have the same meaning as defined in the main Franchise Agreement. Furthermore, unless explicitly modified by the addendum, the original Franchise Agreement remains fully effective. The document allows for execution in multiple counterparts, including electronic transmission, making the signing process more flexible and efficient for both Chicken Guy and the franchisee.