factual

For Churchs Chicken franchisees, in what state can a lawsuit be brought for claims arising from the Development Agreement, according to Section 23?

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.

CAJUN: CAJUN GLOBAL LLC DEVELOPER:

Exhibit O-2

ADDENDUM TO THE CHURCH'S TEXAS CHICKEN DEVELOPMENT AGREEMENT REQUIRED FOR MARYLAND 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.
1. The
following
sentence
is
added
to
the
end
of
Sections
4
(Development
Fee)
of
the
Agreement:
Notwithstanding
the
foregoing,
in
the
State
of
Maryland,
Cajun
will
defer
the
payment
of
the
Development
Fee
until
the
first
restaurant
that
Developer
develop
under
this
Agreement
opens
for
business. Upon
the
opening
of
the
first
restaurant,
Developer
shall
pay
to
Cajun
the
Development
Fee.
Agreement: 2. The
following
sentence
is
added
to
the
end
of
Sections
13
(General
Release)
of
the
This
release
shall
not
apply
to
any
liability
under
the
Maryland
Franchise
Registration
and
Disclosure
Law.
Limitations) 3.

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 ability to bring a lawsuit for claims arising from the Development Agreement's Section 23 depends on the franchisee's location. For franchisees in Illinois, the addendum specifies that Illinois law governs the agreement, and any provision designating jurisdiction or venue outside of Illinois is void with respect to any cause of action enforceable in Illinois. Additionally, causes of action under the Illinois Franchise Disclosure Act must be brought within specific timeframes: the earlier of 3 years from the violation, 1 year after the franchisee becomes aware of the facts, or 90 days after receiving written notice disclosing the violation.

For Churchs Chicken franchisees in New York, the addendum states that the New York Franchises Law governs any claim arising under that law, notwithstanding any other provisions. This means that while the Development Agreement might have general clauses about governing law or dispute resolution, the New York Franchises Law takes precedence for claims originating under that specific body of law.

For franchisees in Rhode Island, the Rhode Island Franchise Investment Act stipulates that any provision in a franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of another state's laws, is void concerning claims enforceable under that Act. This ensures that Rhode Island franchisees have the right to pursue legal claims within their own state under the protections of their state's franchise laws. These state-specific addenda are crucial for prospective franchisees to understand their legal rights and obligations based on their location.

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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