Under what circumstances can Chicken Guy franchisees seek treble damages?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning transfer, termination or non-renewal of the franchise and development agreements. If the agreements contain a provision that is inconsistent with the law, the law will control.
Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota. In addition, nothing in the disclosure document or agreements can abrogate or reduce any of Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Any provision in this Agreement requiring Franchisee to sign a general release of claims against Chicken Guy does not release any claim Franchisee may have under New York General Business Law, Article 33, Sections 680-695.
To the extent required by the North Dakota Franchise Investment Law, Section 22.G. of the Agreement is deleted.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
Based on the 2025 Chicken Guy FDD, the circumstances under which a franchisee can seek treble damages are not explicitly detailed in the provided excerpts. However, the document does mention certain legal rights and protections afforded to franchisees in specific states, particularly California, Minnesota, and North Dakota, which could potentially lead to such remedies depending on the specific violation and applicable state laws.
For instance, the FDD states that California Business and Professions Code Sections 20000 through 20043 provide rights concerning transfer, termination, or non-renewal of the franchise agreements, and if the agreements contain a provision inconsistent with the law, the law will control. Similarly, for Minnesota franchisees, the FDD mentions compliance with Minnesota Statutes, Chapter 80C, which outlines certain rights and remedies. The FDD also notes that franchisees in New York and North Dakota cannot be forced to waive certain rights or claims under their respective state franchise laws.
While the FDD excerpts do not directly address treble damages, the references to state laws suggest that franchisees' rights and remedies are protected by these laws. A prospective Chicken Guy franchisee should consult with a legal professional to understand the specific conditions under which treble damages or other remedies might be available in their state, based on the franchise agreement and applicable state laws.