What state's law governs the Churchs Chicken Franchise Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| r. Non-Competition Covenants After the Franchise is Terminated or Expires | §17 | Post-term, non-competition covenants include a 2-year ban on owning any restaurant business that specializes in selling fried chicken within a 5-mile radius of your Restaurant or any Restaurant then in existence (which restriction does not apply to your existing Restaurants, if any, or to other restaurants you operate that are franchised by us or our affiliates). With respect to individual owners, the same covenant is contained in § 4 of the Guaranty Agreement. |
| s. Modification of Agreement | §25 | All amendments must be mutually agreed on and in writing; however, we can modify the Manual. |
| t. Integration/Merger Clause | §25 | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of this Franchise Disclosure Document and the Franchise Agreement may not be enforceable. |
| u. Dispute Resolution by | Not Applicable | |
| Arbitration or Mediation | ||
| v. Choice of Forum | §27 | Subject to state law, if you sue us, you must do so where our principal office is located (currently, Atlanta, Georgia). If we sue you, we may do so there as well. |
| w. Choice of Law | §27 As of December 31, 2024, there were 714 Franchised Restaurants and 159 Company Restaurants. | Subject to state law, Georgia law applies. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–62)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the Franchise Agreement is governed by Georgia law, subject to state law. This means that the laws of Georgia will be used to interpret and enforce the agreement. However, this is subject to the laws of the state in which the franchise is located, which may supersede Georgia law in certain situations.
This is important for prospective franchisees because it determines which state's legal system will be used if there is a dispute regarding the Franchise Agreement. Franchisees should be aware of the laws of both Georgia and the state in which their franchise is located to understand their rights and obligations under the agreement.
It is typical for franchise agreements to specify a choice of law, as this provides clarity and predictability in the event of a legal dispute. However, the specific choice of law may vary depending on the franchise system and the location of the franchisee. Prospective franchisees should carefully review the choice of law provision in the Franchise Agreement and consult with an attorney to understand its implications.