What is the condition that triggers the payment of the Development Fee for a Churchs Chicken franchise in the state of Maryland?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Notwithstanding any other provision of this Agreement to the contrary, Developer may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of a License.
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- The following sentence is added to the end of Section 25 (Representations) of the Agreement:
Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. Representations in this Agreement are not intended to, nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
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- Sections 5.A, B, E, G, I, J, and K of the Development Agreement are deleted in their entirety. Sections 25.A, B, D, E, G, I, J, and K of the Development Agreement are also deleted in their entirety.
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- The Compliance Certification is amended to include the following:
All representations requiring prospective developers to assent to any release, estoppel, or waiver of liability are not intended to, nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
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- 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.
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- Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement.
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- Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)
What This Means (2025 FDD)
The 2025 Churchs Chicken Franchise Disclosure Document includes state-specific addenda that modify the standard Development Agreement for franchisees in certain states. For Maryland, the addendum addresses specific legal considerations related to the Maryland Franchise Registration and Disclosure Law.
Specifically, the addendum ensures that a Churchs Chicken developer in Maryland can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and that any such claims must be brought within 3 years after the grant of a License. The addendum also clarifies that no representations in the agreement should act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
However, the excerpts provided do not specify the exact conditions that trigger the payment of the Development Fee in Maryland or any other state. The addendum focuses on legal rights and waivers under Maryland law, not on the payment schedule or conditions for the development fee. A prospective Churchs Chicken franchisee in Maryland should carefully review the full Development Agreement and consult with the franchisor to understand the specific payment terms and conditions for the development fee.