For Churchs Chicken franchisees in Maryland, what is the effect of the addendum on Section 15.C.(4) of the Franchise Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | Addendum | to the Church's Texas Chicken Franchise Agreement dated | |
|---|---|---|---|
| ("Franchise | Agreement") | between | |
| CAJUN | |||
| GLOBAL | |||
| LLC, | |||
| d/b/a | |||
| Church's Texas Chicken | |||
| a | |||
| Delaware | |||
| limited | liability | company | ("Cajun"), |
| and | |||
| , | |||
| a | |||
| formed | |||
| in | |||
| ("Franchisee") | |||
| is | |||
| entered | |||
| into | |||
| simultaneously | |||
| with | |||
| the | |||
| execution | |||
| of | |||
| the | |||
| Franchise | |||
| Agreement. | |||
| (Transfer | 1. Conditions) | The | following sentence is added to the end of Sections 2.B.(2)(e) (Renewal Term), 15.C.(4) and 16 (General Release) of the Agreement: |
| This Disclosure | release shall not apply to any liability under the Maryland Franchise Registration and Law. | ||
| Agreement |
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, an addendum is required for Maryland franchisees that affects sections of the franchise agreement. Specifically, the addendum modifies Section 15.C.(4) of the agreement, which likely pertains to conditions related to transfer of ownership, renewal, or general releases.
The addendum adds a sentence to the end of Sections 2.B.(2)(e), 15.C.(4), and 16 of the Churchs Chicken Franchise Agreement. The added sentence clarifies that any release signed by the franchisee does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law.
In practical terms, this means that if a Churchs Chicken franchisee in Maryland signs a general release as part of a transfer, renewal, or other agreement, that release will not prevent the franchisee from pursuing claims related to violations of Maryland's franchise laws. This addendum provides additional protection to franchisees in Maryland, ensuring that their rights under state franchise law are preserved, even if they sign a general release. Prospective franchisees should consult with a legal professional to fully understand the implications of this addendum and the Maryland Franchise Registration and Disclosure Law.