Under what conditions can the Development Agreement for a Chicken Guy franchise be modified?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| s. Modification of the | Section 20 | No modification generally without signed | agreement | | agreement, but we may modify the System.
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 Development Agreement can generally only be modified with a signed agreement. However, Chicken Guy retains the right to modify the System itself. This means that while the core terms of your Development Agreement are fixed unless both parties agree to changes in writing, Chicken Guy can still make changes to its operating procedures, recipes, or brand standards.
It's important to note that addenda to the Development Agreement may be required based on the franchisee's location. For example, the FDD includes addenda for franchisees in California, Illinois, Maryland, and Washington, addressing specific state laws and regulations. These addenda modify certain provisions of the standard Development Agreement to ensure compliance with local laws. These addenda often include clauses that prevent franchisees from waiving rights under state franchise laws or disclaiming reliance on statements made by Chicken Guy during the franchise sales process.
Prospective Chicken Guy franchisees should carefully review Section 20 of the Development Agreement, as well as any state-specific addenda, to fully understand the conditions under which the agreement can be modified and the extent to which Chicken Guy can make unilateral changes to the System. Franchisees should also be aware that state laws may impact the enforceability of certain provisions in the Development Agreement, as highlighted in the addenda for California, Illinois, Maryland, and Washington.