What is the effect of the Angry Chickz Addendum on conflicting provisions in the Development Agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 Area Development Agreement will be construed and enforced in accordance with its terms.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the addendum modifies the Development Agreement, and in some cases, supersedes its original terms. Several addenda included in the document address specific state laws and regulations, and how those laws take precedence over certain aspects of the original agreement. For example, the Illinois addendum states that any condition that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similarly, in Virginia, no statement can waive claims under state franchise law.
Specifically, the addenda address issues such as payment of initial fees, jurisdiction and venue for disputes, and franchisee rights upon termination or non-renewal. For instance, in Illinois and Virginia, the payment of initial fees is deferred until Angry Chickz has met its pre-opening obligations and the franchisee's business is open. The Rhode Island addendum notes that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of other states' laws is void with respect to claims enforceable under the Rhode Island Franchise Investment Act.
Furthermore, the addenda include clauses ensuring that franchisees cannot waive claims under applicable state franchise laws, including claims of fraud. These provisions supersede any conflicting terms in other documents related to the franchise agreement. The addenda also state that, unless explicitly modified by the addendum, the original Area Development Agreement remains in full force and effect, meaning that only the specific points addressed in the addendum are altered, while the rest of the agreement stands.