What assets are at risk if an Angry Chickz franchise fails?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
- **1.
Release by Franchisee and Guarantors.** If Franchisee is an entity, Franchisee (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities) and Guarantors (on behalf of themselves and their respective heirs, representatives, successors and assigns) or, if Franchisee is an individual, Franchisee (on behalf of himself/herself and his/her heirs, representatives, successors and assigns) (collectively, "Releasors") freely and without any influence forever release ANGRY CHICKZ, its parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities (collectively, "Releasees"), with respect to any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively, "Claims"), which any Releasor ever owned or held, now owns or holds or may in the future own or hold, including, without limitation, claims arising under federal, state and local laws, rules and ordinances and claims arising out of, or relating to, the Development Agreement and/or Franchise Agreement and all other agreements between any Releasor and any Release arising out of, or relating to any act, omission or event occurring on or before the date of this Release, unless prohibited by applicable law.
This general release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- **2.
Risk of Changed Facts.** Franchisee and Guarantors understand that the facts in respect of which the release in Section 1 is given may turn out to be different from the facts now known or believed by them to be true.
Franchisee and Guarantors hereby accept and assume the risk of the facts turning out to be different and agree that the release in Section 1 shall nevertheless be effective in all respects and not subject to termination or rescission by virtue of any such difference in facts.
- **3.
Waiver of Section 1542**.
Further, Releasors expressly waive all right, protection, privilege and benefit under Section 1542 of the Civil Code of the State of California, which provides:
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 38–39)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the assets at risk in the event of an Angry Chickz franchise failure are not explicitly detailed. However, Item 23 includes a release by the franchisee and guarantors, which outlines a comprehensive waiver of claims against Angry Chickz, its parent, subsidiaries, and affiliates. This release covers a wide range of potential liabilities and causes of action, whether known or unknown, vested or contingent.
The release includes claims arising under federal, state, and local laws, rules, and ordinances, as well as claims related to the Development Agreement and/or Franchise Agreement. This suggests that franchisees could potentially lose investments made in the franchise, and may be prevented from pursuing legal action against Angry Chickz, with the exception of liability under the Maryland Franchise Registration and Disclosure Law.
Furthermore, the document highlights that franchisees and guarantors accept the risk of changed facts and waive their rights under Section 1542 of the Civil Code of the State of California, which relates to unknown claims. This indicates that franchisees are assuming a significant level of risk and responsibility, potentially impacting their personal and business assets in case of failure.
Since the document does not provide a comprehensive list of assets at risk, prospective Angry Chickz franchisees should seek legal and financial advice to fully understand the potential liabilities and risks associated with the franchise agreement. It is important to evaluate the implications of the release and waiver clauses, and to assess the potential impact on personal and business assets in the event of franchise failure.