factual

What state's law applies to the Development Agreement for Churchs Chicken?

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.

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 specific state law governing the Development Agreement depends on where the franchise is offered or sold, or where the developer resides or the development area is located. For instance, if the offer or sale of the franchise is made in Illinois, if the developer is a resident of Illinois, and/or if the development area will be located in Illinois, then Illinois law will govern the agreement. Similarly, if the offer or sale of a franchise was made in the State of New York; if the Developer is a resident of the State of New York; or part of the Development Area will be located in the State of New York, New York law will apply.

This means that the Development Agreement is not subject to a single, uniform state law across all franchisees. Instead, the applicable state law is determined by the franchisee's specific circumstances and location. This is a critical consideration for prospective Churchs Chicken franchisees, as the laws governing franchise agreements can vary significantly from state to state.

For example, the FDD includes state-specific addenda for California, Maryland, Illinois and New York, indicating that these states have specific regulations that impact the franchise agreement. These addenda modify certain sections of the standard agreement to ensure compliance with local laws. A prospective franchisee should carefully review the addendum (if any) for their state to understand how it modifies the standard agreement and what specific rights and obligations they have under their local state 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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