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If a Churchs Chicken franchisee is a resident of Illinois, does this trigger the need for the addendum?

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

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, an addendum to the Development Agreement is required for Illinois franchisees. Specifically, the document states that the addendum is executed because the offer or sale of a franchise was made in Illinois, the developer is a resident of Illinois, and/or the development area will be located in Illinois. Therefore, if a Churchs Chicken franchisee is a resident of Illinois, this triggers the need for the addendum.

This addendum modifies certain aspects of the standard Churchs Chicken Development Agreement to comply with the Illinois Franchise Disclosure Act. These modifications address specific legal requirements within Illinois, such as those pertaining to jurisdiction, venue, and enforceability of certain provisions. For instance, the addendum clarifies that any provision designating jurisdiction or venue outside of Illinois is void with respect to actions enforceable in Illinois.

Furthermore, the addendum includes statements to be added to the risk factors on the cover page of the franchise disclosure document, emphasizing the stipulations of the Illinois Franchise Disclosure Act. It also addresses conditions, stipulations, or provisions that might require a franchisee to waive compliance with the Illinois Franchise Disclosure Act, stating that such waivers are void.

In practical terms, this means that prospective Churchs Chicken franchisees in Illinois will have additional protections and clarifications within their franchise agreement, ensuring compliance with Illinois state law. This addendum helps to safeguard the franchisee's rights and provides a legal framework that is consistent with Illinois regulations, which is a beneficial aspect for those looking to establish a Churchs Chicken franchise in Illinois.

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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