factual

Under what circumstances is the Addendum to the Development Agreement for Churchs Chicken executed?

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.

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, the Addendum to the Development Agreement is executed simultaneously with the Development Agreement under specific circumstances related to the location and residency of the developer.

Specifically, the Addendum is executed if (A) the offer or sale of a franchise was made in the State of New York, (B) the developer is a resident of the State of New York, and/or (C) part of the Development Area will be located in the State of New York. A similar addendum is executed if the offer or sale of a franchise was made in the State of Illinois; the developer is a resident of the State of Illinois; and/or the Development Area will be located in the State of Illinois.

These addenda modify the Development Agreement to ensure compliance with specific state laws, such as the New York General Business Law Sections 680 – 695 or the Illinois Franchise Disclosure Act. For example, the addendum for New York clarifies that any provision in the agreement inconsistent with New York law may not be enforceable and includes specific stipulations regarding Cajun's (Churchs Chicken) assignment of rights and the developer's release of claims. The Illinois addendum includes stipulations regarding jurisdiction, venue, and causes of action under the Illinois Franchise Disclosure Act.

For a prospective Churchs Chicken franchisee, this means that the standard Development Agreement may be modified by an addendum if they are developing in certain states like New York or Illinois. It is important to carefully review any such addendum to understand how it alters the original agreement and what specific rights and obligations are affected by state laws. This ensures that the franchisee is aware of their legal protections and responsibilities within the specific jurisdiction.

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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