Does the Angry Chickz Area Development Agreement addendum for Virginia allow franchisees to disclaim reliance on statements made by the franchisor?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment 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 Franchise Disclosure Document, the addendum for Virginia specifically addresses the issue of franchisees disclaiming reliance on statements made by the franchisor. The addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.
This means that an Angry Chickz franchisee in Virginia cannot be forced to sign away their right to claim they relied on the franchisor's statements, especially if those statements turn out to be false or misleading. This protection is particularly important in cases of alleged fraud, where a franchisee might argue they were induced to invest based on inaccurate information provided by Angry Chickz.
This type of clause is designed to protect franchisees and ensure they retain their legal rights under state franchise laws. It prevents Angry Chickz from using waivers or acknowledgments to shield themselves from liability for misrepresentations or other violations of franchise law. Prospective franchisees should carefully review this addendum and understand their rights, consulting with an attorney if necessary, to fully grasp the implications of this protection.