Under what conditions is the Addendum to the Chicken Guy Restaurant Development Agreement required for South Dakota developers executed?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
E CHICKEN GUY! RESTAURANT DEVELOPMENT AGREEMENT REQUIRED FOR SOUTH DAKOTA DEVELOPERS**
| This | Addendum | to | the | Chicken | Guy! | Restaurant | Development | Agreement | dated | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ("Development Agreement") between Chicken Guy (Franchisor), LLC ("Chicken | |||||||||||
| Guy") | and | simultaneously with the execution of the Development Agreement. | ("Developer") | is |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Addendum to the Chicken Guy Restaurant Development Agreement for South Dakota developers is required under specific conditions. This addendum becomes an integral part of the Development Agreement when one or more of the following conditions are met:
First, if the offer or sale of a Chicken Guy franchise to the developer was made in the state of South Dakota, the addendum is required. Second, if the developer is a resident of South Dakota, the addendum must be executed. Finally, the addendum is also required if part or all of the Development Territory is located within the state of South Dakota.
Furthermore, 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 information is added to the end of Section 4 of the Development Agreement. This addendum ensures that Chicken Guy complies with South Dakota's specific franchise regulations and provides additional protections or disclosures to developers in that state.