factual

What effect is prohibited for any statement, questionnaire, or acknowledgement signed by an Angry Chickz franchisee regarding claims under state franchise law?

Angry_Chickz Franchise · 2025 FDD

Answer 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 Franchise Disclosure Document, several states (California, Hawaii, Illinois, Maryland, Minnesota, North Dakota, and Virginia) include addenda specifying that no statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting their franchise can waive claims under state franchise law. This includes claims related to fraud in the inducement. Additionally, these documents cannot disclaim reliance on statements made by Angry Chickz, its franchise sellers, or anyone acting on the company's behalf. This provision overrides any conflicting terms in any document related to the franchise agreement.

For a prospective Angry Chickz franchisee, this means that even if they sign a document that appears to waive their rights or disclaim reliance on the franchisor's statements, those waivers may not be enforceable under the franchise laws of these states. This protection is particularly important in cases where a franchisee believes they were misled or defrauded during the franchise sales process. The franchisee retains the right to pursue legal claims, regardless of any seemingly contradictory statements they may have signed.

This type of provision is not uncommon in franchise agreements, as many states have franchise laws designed to protect franchisees from overreaching by franchisors. These laws aim to ensure a fair balance of power between the parties and prevent franchisees from unknowingly giving up important legal rights. Franchisees should always carefully review all documents before signing and consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.