What is the effect of signing the Angry Chickz Release of All Claims?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ou to sign a general release.*]
| THIS GENERAL RELEASE ("Release") is executed on by | |
|---|---|
| ("Franchisee") and/or | |
| ("Guarantors") as a condition of (1) the | |
| transfer of the ANGRY CHICKZ FRANCHISING LLC Franchise Agreement | dated |
| between ANGRY CHICKZ FRANCHISING LLC ("Angry Chickz") and Franchisee ("Franchise | |
| Agreement") or the ANGRY CHICKZ FRANCHISING LLC | Development Agreement dated |
| between ANGRY CHICKZ and Franchisee ("Development Agreement"); or (2) the | |
| execution of a renewal Franchise Agreement by Franchisee and ANGRY CHICKZ. |
- 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:
- 1542 A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
By signing this Release of All Claims, Releasors are giving up all rights under Section 1542 and any similar provision of any state.
- 4. No Prior Assignment. Franchisee and Guarantors represent and warrant that the Releasors are the sole owners of all Claims and rights released in Section 1 and that the Releasors have not assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim released under Section 1.
- **5.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, signing the Release of All Claims means the franchisee gives up certain rights and protections. Specifically, the franchisee releases Angry Chickz from any and all claims, demands, liabilities, and causes of action, whether known or unknown, that the franchisee may have against them. This release extends to claims arising from the Development Agreement, Franchise Agreement, and any other agreements between the franchisee and Angry Chickz, related to events occurring on or before the date of the release. This is a broad release, encompassing various types of claims under federal, state, and local laws.
Furthermore, the franchisee waives their rights under Section 1542 of the California Civil Code, which protects against unknowingly releasing claims. By signing the release, the franchisee accepts the risk that the facts surrounding the release may turn out to be different from what they currently believe and agrees that the release will still be effective. The franchisee also agrees not to initiate or participate in any legal proceedings against Angry Chickz related to the released claims. This release acts as a complete defense against any such claims, and Angry Chickz can seek an injunction to prevent the franchisee from asserting any released claim.
However, the document also notes some limitations and exceptions. The general release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law or claims arising under the Washington Franchise Investment Protection Act. For franchisees in Minnesota, any release that waives claims under Minnesota Statute §§ 80C.01 - 80C.22 is prohibited. These exceptions suggest that while the release is broad, it is not absolute and is subject to certain state laws designed to protect franchisees. Prospective franchisees should consult with legal counsel to fully understand the implications of signing the Release of All Claims and how it affects their rights in their specific state.