What sections of the Churchs Chicken Franchise Agreement are modified by the addendum regarding the release of claims?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| (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 | | 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. | 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.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the addendum modifies several sections of the Franchise Agreement related to release of claims. Specifically, for franchisees in Maryland, the addendum adds a sentence to the end of Sections 2.B.(2)(e) (Renewal Term), 15.C.(4) and 16 (General Release) of the Agreement stating that the disclosure release does not apply to any liability under the Maryland Franchise Registration and Law. This ensures that franchisees in Maryland retain their rights under Maryland franchise law, even with the general release provisions in the standard agreement.
In addition, the addendum modifies Section 30 (Representations) of the Franchise Agreement by adding a sentence clarifying that representations in the agreement are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Furthermore, Sections 30.A, D, G, I, and J of the Franchise Agreement are deleted in their entirety.
Finally, a new subsection H is added to Section 27 (Governing Law, Forum, Limitations), allowing franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, with a statute of limitations of 3 years after the grant of the franchise. These modifications appear designed to ensure compliance with Maryland franchise law and protect the rights of franchisees in that state.