Under what circumstances is the Rhode Island Addendum to the Chicken Guy Development Agreement executed?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Rhode Island; (B) Developer is a resident of the State of Rhode Island; and/or (C) part or all of the Development Territory is located in the State of Rhode Island.
- 2. The following language is added to Section 22.D:
- Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
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 Rhode Island Addendum to the Development Agreement is executed under specific circumstances related to the franchisee or the territory. The addendum is an integral part of the Development Agreement and is incorporated into it.
The Rhode Island Addendum is executed if the offer or sale of the Chicken Guy franchise to the developer was made in Rhode Island. It is also executed if the developer is a resident of Rhode Island. Furthermore, the addendum is required if part or all of the development territory granted to the developer is located in Rhode Island.
This addendum ensures that Chicken Guy franchisees in Rhode Island are protected by the Rhode Island Franchise Investment Act. Specifically, it addresses the enforceability of provisions related to jurisdiction, venue, and the application of laws from other states, ensuring that Rhode Island law prevails for claims enforceable under the Act. This protects the franchisee's rights under Rhode Island law, preventing them from being subjected to potentially unfavorable terms from outside the state.
Prospective Chicken Guy franchisees should carefully review this addendum to understand their rights and obligations under Rhode Island law. They should also consult with a legal professional to ensure they fully understand the implications of the Development Agreement and the Rhode Island Addendum.