Under what conditions is the Chicken Guy! Restaurant Development Agreement Addendum required for Rhode Island developers 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 Rhode Island; (B) Developer is a resident of the State of Rhode Island; and/or (C) part or all of the Development Territory is located in the State of Rhode Island.
- 2. The following language is added to Section 22.D:
- Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
- 3. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect. This Addendum may be executed in multiple counterparts, each of which when executed and delivered shall be deemed an original and all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Addendum by facsimile and any other electronic transmission (including PDF) shall be as effective as delivery of a manually executed counterpart of this Addendum.
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 Restaurant Development Agreement is required for Rhode Island developers under specific conditions. The addendum becomes an integral part of the Development Agreement when any of the following conditions are met: the offer or sale of a Chicken Guy franchise to the developer was made in Rhode Island, the developer is a resident of Rhode Island, or part or all of the development territory is located in Rhode Island.
This means that if a prospective Chicken Guy developer meets any one of these criteria related to Rhode Island, they will be required to sign the addendum. The addendum modifies the original Development Agreement to account for specific legal requirements or considerations within the state of Rhode Island.
Specifically, the Rhode Island Franchise Investment Act states that any provision in a franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island, or requires the application of laws from another state, is void with respect to claims enforceable under the Act. This ensures that Rhode Island Chicken Guy franchisees have the ability to pursue legal claims within their own state under the protection of Rhode Island law.