Under what legal grounds can a Chicken Guy franchisee terminate the franchise agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning transfer, termination or non-renewal of the franchise and development agreements. If the agreements contain a provision that is inconsistent with the law, the law will control.
The franchise and development agreements provide for termination upon bankruptcy. These provisions may not be enforceable under federal bankruptcy law (11 U.S.C.A. § 101, et seq.).
With respect to franchises governed by Minnesota law, Chicken Guy will comply with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5 which require, except in certain cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of franchise agreements.
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
Any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable.
Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
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, a franchisee's right to terminate the franchise agreement is subject to certain legal protections, primarily based on state laws. For instance, in California, the California Business and Professions Code Sections 20000 through 20043 provide specific rights concerning the termination of franchise and development agreements, and these laws will supersede any conflicting provisions in the franchise agreement. Additionally, the franchise agreement provides for termination upon bankruptcy, but this may not be enforceable under federal bankruptcy law.
For franchisees in Minnesota, Chicken Guy must comply with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5, which mandates that, except in certain cases, a franchisee receives 90 days' notice of termination with 60 days to cure the issue, and 180 days' notice for non-renewal of franchise agreements. Similarly, for franchisees in Illinois, the Illinois Franchise Disclosure Act outlines specific rights regarding termination and non-renewal, and any provision in the franchise agreement that requires waiving compliance with this Act is void.
In New York, any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable. Furthermore, in Washington, any provisions in the franchise agreement that prohibit the franchisee from communicating with regulators are inconsistent with the Franchise Disclosure Document and unlawful under RCW 19.100.180(2)(h). Therefore, the legal grounds for a Chicken Guy franchisee to terminate the franchise agreement depend significantly on the specific state laws governing the franchise relationship and any inconsistencies between those laws and the franchise agreement itself.