Does the Chicken Guy Washington Addendum modify the Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.
As a result, any such provisions contained in the Development Agreement or elsewhere are void and unenforceable in Washington.
-
- Questionnaires and Acknowledgments. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
-
- Prohibitions on Communicating with Regulators. Any provision in the Development 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).
-
- Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
-
- Surety Bond. The following language is added to the end of Section 4 of the Development Agreement:
A surety bond in the amount of $100,000 has been obtained by Chicken Guy. The Washington Securities Division has made the issuance of Chicken Guy's permit contingent upon Chicken Guy maintaining surety bond coverage acceptable to the Administrator until (a) all Washington franchisees have (i) received all initial training that they are entitled to under the Franchise Agreement or Chicken Guy's franchise disclosure document, and (ii) are open for business; or (b) the Administrator issues written authorization to the contrary.
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 Washington Addendum does modify the Development Agreement. However, the Development Agreement remains in effect except for the specific modifications outlined in the addendum.
The Washington Addendum includes provisions specific to franchisees in Washington. For example, it states that any provisions in the Development Agreement that prohibit the franchisee from communicating with regulators are void and unenforceable in Washington. It also addresses issues such as questionnaires, acknowledgments, and franchise brokers, ensuring compliance with Washington's Franchise Investment Protection Act.
Furthermore, the Washington Addendum adds language to Section 4 of the Development Agreement regarding a surety bond. Chicken Guy has obtained a $100,000 surety bond, and the Washington Securities Division requires Chicken Guy to maintain this coverage until all Washington franchisees have completed their initial training and are open for business, or until the Administrator provides written authorization to the contrary. This addendum ensures that Chicken Guy complies with Washington state laws and provides additional protections for franchisees in that state.