Can Angry Chickz condition its consent for an Excess Restaurant on the payment of additional fees?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Payment of all initial fees payable under the Franchise Agreement is deferred until Franchisor has satisfied its pre-opening obligations to you under the Franchise Agreement and your Angry Chickz business opens to the public. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- 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.
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- Construction. In all other respects, the Franchise Agreement will be construed and enforced in accordance with its terms.
[SIGNATURES ON NEXT PAGE]
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the Effective Date identified below.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document addendums for Illinois and California, the franchisor cannot enforce conditions that waive compliance with state franchise laws. Specifically, the Illinois addendum states that any condition that binds a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. Similarly, the California addendum indicates that a waiver of rights under the Franchise Investment Law is void.
These stipulations mean that Angry Chickz franchisees in Illinois and California cannot be forced to waive their legal rights or protections under state laws as a condition of the franchise agreement. This includes any attempt by Angry Chickz to impose additional fees or conditions for consent related to an excess restaurant if such conditions violate state laws.
For a prospective Angry Chickz franchisee, this provides a safeguard against potentially overreaching demands from the franchisor. It ensures that the franchisee's rights under Illinois and California law are protected and cannot be waived through franchise agreement terms or other acknowledgments. Franchisees should consult with a legal professional to fully understand their rights and protections under these state laws.
However, the FDD does not explicitly address whether Angry Chickz can condition its consent for an Excess Restaurant on the payment of additional fees in states other than Illinois and California. A prospective franchisee should seek clarification from the franchisor regarding the specific conditions and fees that may be associated with establishing an Excess Restaurant in other states, and how those conditions align with applicable state franchise laws.