Under what condition are the provisions of the Additional Disclosure effective for a Chicken Guy franchise in South Dakota?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
e:
ADDENDUM TO THE CHICKEN GUY! RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR SOUTH DAKOTA 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 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.
*
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 provisions of the addendum form an integral part of, and are incorporated into, the Franchise Agreement when (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.
This means that if a prospective Chicken Guy franchisee meets any of these conditions related to South Dakota, the additional disclosures specific to South Dakota become a binding part of their franchise agreement. These additional disclosures may include specific regulations, requirements, or clarifications mandated by South Dakota law to protect franchisees.
For example, the FDD states 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. This addendum ensures that franchisees operating in South Dakota receive the benefits and protections mandated by the state's franchise laws.
Prospective franchisees should carefully review the South Dakota addendum to understand their rights and obligations under state law, as these provisions will directly impact their franchise agreement and operations.