Under what condition is Section 21.D. of the Chicken Guy Franchise Agreement deleted?
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 Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Franchisee was made in the State of Minnesota; (B) Franchisee is a resident of the State of Minnesota; 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 Minnesota.
- 5. Injunctive Relief. Section 21.B.(1)(i) is deleted and replaced with the following statement:
Franchisee's use or duplication of the System or any part of the System in any other business would constitute an unfair method of competition, for which Chicken Guy would be entitled to all legal and equitable remedies, including the right to seek injunctive relief.
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, there is no mention of Section 21.D being deleted from the Franchise Agreement. However, Section 21.B.(1)(i) is deleted and replaced with the following statement: Franchisee's use or duplication of the System or any part of the System in any other business would constitute an unfair method of competition, for which Chicken Guy would be entitled to all legal and equitable remedies, including the right to seek injunctive relief. This change is part of an addendum to the franchise agreement that is executed if the offer or sale of a franchise was made in the state of Minnesota, if the franchisee is a resident of Minnesota, and/or if the franchised restaurant will be located or operated in Minnesota.
This modification clarifies Chicken Guy's right to protect its system and brand from unfair competition by franchisees in Minnesota. It emphasizes that Chicken Guy can pursue legal remedies, including seeking injunctive relief, if a franchisee uses or duplicates the Chicken Guy system in another business. This is particularly relevant for franchisees operating in Minnesota, as it reinforces the franchisor's ability to prevent misuse of its proprietary information and operational methods.
Prospective franchisees in Minnesota should be aware of this addendum and its implications for their operations. It highlights the importance of adhering to the franchise agreement and avoiding any activities that could be construed as unfair competition. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and the addendum.