factual

For Churchs Chicken franchisees in New York, what is the effect of the addendum on the Development Agreement?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT O

STATE-SPECIFIC ADDENDA TO DEVELOPMENT AGREEMENT

Exhibit O-1

ADDENDUM TO THE CHURCH'S TEXAS CHICKEN DEVELOPMENT AGREEMENT REQUIRED FOR ILLINOIS FRANCHISEES

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
25
of
the
Agreement:
Section
41
of
the
Illinois
Franchise
Disclosure
Act
states
that
any
condition,
stipulation,
or
provision
purporting
to
bind
any
person
requiring
any
franchise
owner
to
waive
compliance
with
any
provision
of
this
Act
is
void.

[SIGNATURES CONTAINED ON NEXT PAGE]

  1. Any capitalized terms that are not defined in this Addendum shall have the meaning given

  2. Except as expressly modified by this Addendum, the Development Agreement remains

them in the Development Agreement.

unmodified and in full force and effect.

IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement as of the day and year first above written.

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

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, the addendum to the Development Agreement for New York franchisees addresses specific legal considerations within the state. The addendum is integrated into the Development Agreement because the franchise offer or sale occurred in New York, the developer resides in New York, or the development area is located in New York.

Specifically, any part of the agreement that clashes with New York General Business Law Sections 680-695 may not be enforceable. Furthermore, Churchs Chicken cannot assign its rights unless the assignee is willing and able to fulfill Churchs Chicken's obligations. The addendum clarifies that any requirement for the developer to sign a general release does not waive claims under New York General Business Law, Article 33, Sections 680-695.

Additionally, the New York Franchises Law governs any claim arising under that law, and Churchs Chicken's right to injunctive relief is contingent upon proper proofs and approval from the appropriate authority. The provisions of this amendment are effective only if they independently meet the jurisdictional requirements of New York General Business Law, Article 33, Section 680 through 695, and the Codes, Rules, and Regulations of the State of New York, Title 13, Chapter VII, Section 200.1 through 201.16. This ensures that the Development Agreement adheres to New York state law, providing additional protection and clarity for franchisees operating in New York.

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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