factual

Where must a Churchs Chicken franchisee sue the franchisor?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

This Addendum to the Church's Texas Chicken Development Agreement dated ("Development Agreement") between CAJUN GLOBAL LLC, d/b/a Church's
Texas Chicken a Delaware limited liability company ("Cajun"), and , a formed in ("Developer") is entered into simultaneously with the
execution of Development
the Agreement.
Development to all (C) 1. Developer was or part of The provisions of this Addendum form an integral part of, and are incorporated into the Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise made in the State of Illinois; (B) Developer is a resident of the State of Illinois; and/or the Development Area will be located, in the State of Illinois.
2. The
following
sentence
is
added
at
the
end
of
Section
23.A.
of
the
Agreement:
Notwithstanding
the
foregoing,
Illinois
law
shall
govern
this
Agreement.
3. The
following
sentence
is
added
to
the
end
of
Section
23.B.
of
the
Agreement:
Section
4
of
the
Illinois
Franchise
Disclosure
Act
provides
that
any
provision
in
a
franchise
agreement
that
designates
jurisdiction
or
venue
in
a
forum
outside
of
Illinois
is
void
with
respect
to
any
cause
of
action
that
otherwise
is
enforceable
in
Illinois.
4. The
following
sentence
is
added
at
the
end
of
Section
23.C.
of
the
Agreement:
Section
27
of
the
Illinois
Franchise
Disclosure
Act
provides
that
causes
of
action
under
the
Act
must
be
brought
within
the
earlier
of:
3
years
of
the
violation,
1
year
after
the
franchisee
becomes
aware
of
the
underlying
facts
or
circumstances
or
90
days
after
delivery
to
the
franchisee
of
a
written
notice
disclosing
the
violation.
5. The
following
sentence
is
added
to
the
end
of
Section
2

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)

What This Means (2025 FDD)

According to the 2025 Churchs Chicken Franchise Disclosure Document, the location where a franchisee must sue the franchisor depends on the franchisee's location. For franchisees in Illinois, Section 4 of the Illinois Franchise Disclosure Act stipulates that any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is void with respect to any cause of action that is otherwise enforceable in Illinois. This means an Illinois franchisee would pursue legal action against Churchs Chicken within the state of Illinois, regardless of what the franchise agreement might otherwise state.

For franchisees in Minnesota, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit Churchs Chicken from requiring litigation to be conducted outside Minnesota. This ensures that Minnesota franchisees are able to litigate within their home state, protecting their access to local legal resources and forums.

For franchisees in North Dakota, the prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees.

For franchisees in other states, the FDD does not specify a particular location for lawsuits against Churchs Chicken. Therefore, the venue for such lawsuits would likely be determined by the terms outlined in the franchise agreement, which may require disputes to be resolved in a specific jurisdiction. Prospective franchisees should carefully review the franchise agreement and consult with legal counsel to understand the implications of these provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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