factual

For Churchs Chicken franchisees in Maryland, to which sections of the Franchise Agreement does the Addendum apply?

Churchs_Chicken Franchise · 2025 FDD

Answer 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: 2. The following
sentence
is
added
to
the
end
of
Sections
3.A.
(Initial
Franchise
Fee)
of
the
the the Notwithstanding the foregoing, in the State of Maryland, Cajun will defer the payment of franchise fee until the Franchised Restaurant opens for business. Upon the opening of Franchised Restaurant, Franchisee shall pay to Cajun the franchise fee.
of the 3. Agreement: The following new subsection is added to Section 27 (Governing Law, Forum, Limitations)
H. Notwithstanding
any
other
provision
of
this
Agreement
to
the
contrary,
Franchisee
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
Franchise.
Agreement: 4. The following
sentence
is
added
to
the
end
of
Section
30
(Representations)
of
the
Section franchisor waiver Agreement liability 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a from requiring a prospective franchisee to assent to any release, estoppel, or of liability as a condition of purchasing a franchise. Representations in this are not intended to, nor shall they act as a release, estoppel, or waiver of any incurred under the Maryland Franchise Registration and Disclosure Law.
5. Sections 30.A,
D,
G,
I,
and
J
of
the
Franchise
Agreement
are
deleted
in
their
entirety.

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, the Addendum for Maryland franchisees modifies several sections of the standard Franchise Agreement. Specifically, a sentence is added to the end of Sections 2.B.(2)(e) concerning the Renewal Term, 15.C.(4), and 16, which addresses the General Release. This addition clarifies that the disclosure release does not apply to any liability under the Maryland Franchise Registration and Law. This ensures that franchisees retain their rights and protections under Maryland law, even when signing a general release.

Furthermore, the Addendum includes a stipulation regarding the Initial Franchise Fee, addressed in Section 3.A. In Maryland, Churchs Chicken will defer the payment of the franchise fee until the Franchised Restaurant opens for business. Upon opening, the franchisee is then required to pay the franchise fee. This deferral could ease the initial financial burden on new franchisees, allowing them to allocate funds to other startup costs until the restaurant is operational.

The Addendum also adds a new subsection, H, to Section 27, which covers Governing Law, Forum, and Limitations. This addition specifies that franchisees may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of any other provision in the agreement. Any such claims must be brought within 3 years after the grant of the franchise. This provides a clear legal avenue for Maryland franchisees within a defined timeframe.

Additionally, a sentence is added to the end of Section 30 (Representations), clarifying that representations in the agreement do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law, due to Section 14-226 of this law. Sections 30.A, D, G, I, and J of the Franchise Agreement are deleted in their entirety. These modifications collectively ensure that the Franchise Agreement aligns with Maryland law, protecting the rights and interests of Churchs Chicken franchisees in the state.

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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