Under what circumstances is the Addendum to the Churchs Chicken Development Agreement required for Rhode Island franchisees executed?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Developer was made in the State of Rhode Island; (B) Developer is a resident of the State of Rhode Island;
- and/or (C) all or part of the Development Area will be located, in the State of Rhode Island. 2. Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this
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- Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement.
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- Except as expressly modified by this Addendum, the Development Agreement remains 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 Addendum to the Churchs Chicken Development Agreement for Rhode Island franchisees is required under specific circumstances. This addendum is executed when the offer or sale of a franchise to the developer is made in Rhode Island, if the developer is a resident of Rhode Island, or if all or part of the development area will be located in Rhode Island.
This requirement ensures that the franchise agreement complies with the Rhode Island Franchise Investment Act, specifically Section 19-28.1-14, which voids any provision restricting jurisdiction or venue to a forum outside the state or requiring the application of other state laws for claims enforceable under the Act. This provision protects the franchisee's rights within the state of Rhode Island.
For a prospective Churchs Chicken franchisee, this means that if any of the mentioned conditions are met, the Rhode Island addendum will be integrated into their development agreement. This addendum modifies the original agreement to align with Rhode Island law, providing franchisees with legal protections and ensuring that disputes are resolved within the state's jurisdiction. Franchisees should carefully review this addendum to understand their rights and obligations under Rhode Island law.