Under what circumstances is the Addendum to the Churchs Chicken Development Agreement executed for Washington franchisees?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Addendum form an integral part of, and are incorporated into the Development Agreement.
This Addendum is being executed because: (A) the offer or sale of a franchise to Developer was made in the State of Washington; (B) Developer is a resident of the State of Washington; and/or (C) all or part of the Development Area will be located, in the State of Washington.
The state of Washington has a statute, the Washington Franchise Investment Protection Act, RCW 19.100.180 ("Act"), which may supersede this Agreement in Developer's relationship with Cajun, including in the areas of termination and renewal of the franchise.
There also may be court decisions that may supersede this Agreement in Developer's relationship with Cajun, including in the areas of termination and renewal of the franchise.
In the event of a conflict of laws, the provisions of the Act shall prevail.
A release or waiver of rights executed by Developer shall not include rights under the Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation).
In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation).
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 Addendum to the Churchs Chicken Development Agreement for Washington franchisees is executed under the following conditions: when the offer or sale of a franchise to the Developer was made in the State of Washington, when the Developer is a resident of the State of Washington, and/or when all or part of the Development Area will be located in the State of Washington. This addendum is an integral part of the Development Agreement.
This addendum also addresses the Washington Franchise Investment Protection Act, noting that the state's statute may supersede the Development Agreement in the franchisee's relationship with Churchs Chicken, particularly in areas of termination and renewal of the franchise. Court decisions may also supersede the agreement in these areas. In case of conflicting laws, the provisions of the Act will take precedence.
The addendum clarifies that a release or waiver of rights by the Developer will not include rights under the Act unless it is executed as part of a negotiated settlement after the agreement is in effect and both parties are represented by independent counsel. Additionally, provisions that unreasonably restrict or limit the statute of limitations for claims under the Act, or rights to a jury trial, may not be enforceable. The addendum also states that noncompetition covenants are void and unenforceable against an employee of a franchisee unless the employee's earnings exceed $100,000 per year (adjusted annually for inflation) or $250,000 per year (adjusted annually for inflation) for independent contractors.