factual

What is the purpose of the Addendum to the Churchs Chicken Franchise Agreement for Maryland franchisees?

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 the 2025 Churchs Chicken Franchise Disclosure Document, the Addendum to the Franchise Agreement for Maryland franchisees addresses specific legal considerations related to franchising in Maryland.

The addendum modifies certain sections of the standard Churchs Chicken Franchise Agreement to comply with Maryland law. Specifically, it ensures that the general release provisions do not apply to liabilities arising under Maryland's franchise regulations. It also stipulates that Churchs Chicken will defer the franchise fee payment until the franchised restaurant opens for business in Maryland. Furthermore, it allows franchisees to bring lawsuits in Maryland for claims arising under Maryland's franchise laws and sets a 3-year limitation for such claims.

Additionally, the addendum includes a statement clarifying that representations made in the agreement do not act as a release, estoppel, or waiver of any liability under Maryland's franchise regulations. Certain sections of the Franchise Agreement are also deleted entirely for Maryland franchisees.

In essence, the Maryland addendum is designed to protect the rights of Churchs Chicken franchisees in Maryland and ensure that the franchise agreement adheres to Maryland's specific franchise laws, particularly the Maryland Franchise Registration and Disclosure Law.

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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