What is the effect of the release provided to Angry Chickz regarding the franchisee's ability to terminate or rescind the agreement due to differences in facts?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 FDD, a franchisee and any guarantors associated with the franchise must acknowledge that the facts related to the release they are providing to Angry Chickz may change or turn out to be different from what they initially believed. By signing the release, the franchisee and guarantors agree to assume the risk of these factual differences.
Specifically, the release states that it will remain effective regardless of any discrepancies in the facts. This means that the franchisee cannot terminate or rescind the release based on the argument that the facts were not as they understood them to be at the time of signing. This provision is designed to protect Angry Chickz from future claims arising from misunderstandings or changes in circumstances that the franchisee might later use as a basis for legal action.
This type of clause is common in franchise agreements to provide legal certainty for the franchisor. However, it places a significant burden on the franchisee to conduct thorough due diligence and fully understand all aspects of the franchise agreement and related circumstances before signing the release. Franchisees should seek legal counsel to fully understand the implications of this clause and ensure they are comfortable accepting the associated risks.