Under what conditions is the 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 California; (B) Developer is a resident of the State of California; and/or (C) part or all of the Development Territory is located in the State of California.
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 Addendum to the Chicken Guy Development Agreement is executed under specific conditions related to the location and residency of the developer. For instance, if the offer or sale of a franchise to the developer was made in the State of California, if the developer is a resident of California, or if part or all of the development territory is located in California, then the addendum is executed. Similar conditions apply for franchisees in South Dakota, Minnesota and New York.
These addenda are designed to ensure that Chicken Guy's franchise operations comply with state-specific franchise laws. The inclusion of these addenda demonstrates Chicken Guy's attention to legal requirements and its proactive approach to addressing potential conflicts or inconsistencies between the standard Development Agreement and state laws.
For a prospective Chicken Guy franchisee, this means that the terms of their Development Agreement may be modified or supplemented by an addendum that reflects the specific legal requirements of their state. It is important for franchisees to carefully review any addenda to understand how they affect their rights and obligations under the Development Agreement. Franchisees should also seek legal counsel to ensure they fully understand the implications of these state-specific provisions.