What acknowledgement does the Angry Chickz Developer make regarding reliance on statements?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, there are specific acknowledgements regarding reliance on statements made by the franchisor, particularly within the context of state franchise laws. For franchisees in Illinois, North Dakota, and Virginia, the FDD includes addenda that address this issue directly. These addenda state that no statement, questionnaire, or acknowledgement signed by a franchisee can disclaim reliance on statements made by Angry Chickz or its representatives. This protection extends to claims under applicable state franchise laws, including fraud in the inducement.
This provision is significant because it prevents Angry Chickz from enforcing any agreement where a franchisee might have inadvertently waived their right to claim they relied on misleading information provided by the franchisor. This is particularly relevant in states with strong franchise protection laws like Illinois, North Dakota, and Virginia, where the state aims to protect franchisees from potentially overbearing franchisors. The inclusion of these statements in the FDD indicates an effort to comply with these state-specific regulations and ensure franchisees are aware of their rights.
For a prospective Angry Chickz franchisee, this means that any document they sign during the franchise commencement process cannot be used to prevent them from claiming they relied on statements made by the franchisor, especially if those statements turn out to be false or misleading. This provides an additional layer of protection for franchisees, allowing them to pursue legal remedies if they believe they were induced into the franchise agreement based on fraudulent information. This clause supersedes any other conflicting terms in any document executed in connection with the franchise, reinforcing its importance.
It is important to note that these protections are specifically highlighted in addenda for Illinois, North Dakota, and Virginia, suggesting that franchisees in other states may not have the exact same level of explicit protection against disclaiming reliance on franchisor statements. Franchisees should consult with legal counsel to fully understand their rights and protections under the franchise agreement and applicable state laws.