Under what circumstances is the South Dakota Addendum to the Chicken Guy Franchise Agreement 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 South Dakota; (B) Franchisee is a resident of the State of South Dakota; 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 South Dakota.
- 2. The following language is added to the end of Section 7. A. of the Franchise Agreement:
Pursuant to an order by the South Dakota Securities Regulation Office, Chicken Guy has posted a surety bond in the amount of $50,000.
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.
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 South Dakota Addendum to the Franchise Agreement is executed under specific conditions related to the franchisee or the location of the franchise.
The Addendum is required if (A) the offer or sale of the Chicken Guy franchise was made in the State of South Dakota, (B) the franchisee is a resident of South Dakota, 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 South Dakota.
Additionally, the South Dakota Securities Regulation Office requires Chicken Guy to post a surety bond in the amount of $50,000. This requirement is integrated into the Franchise Agreement through the addendum. The addendum ensures that South Dakota franchise law and regulations are specifically addressed and incorporated into the franchise agreement, providing additional clarity and protection for franchisees operating in South Dakota.