Under what conditions are Chicken Guy transfer fees collectable in Washington?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, any provisions related to transfer fees contained in the franchise agreement are considered void and unenforceable in Washington. This means that Chicken Guy cannot enforce any clauses that require franchisees in Washington to pay a fee for transferring their franchise to another party. This protection is explicitly stated within the Washington Addendum to the Franchise Agreement.
This addendum is designed to ensure that the franchise agreement complies with Washington state law, which may differ from the laws of other states where Chicken Guy franchises are offered. The inclusion of such addenda is a common practice in franchising to address state-specific regulations and protect the rights of franchisees.
For a prospective Chicken Guy franchisee in Washington, this addendum provides a significant benefit by removing the financial burden of transfer fees. It is important for potential franchisees to carefully review the entire FDD and all addenda to understand their rights and obligations under the franchise agreement.