Does the Angry Chickz franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives?
Angry_Chickz Franchise · 2025 FDDAnswer 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, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by Angry Chickz or its representatives. Several addenda included in the FDD for various states (Illinois, California, Minnesota, New York, Virginia, and Washington) explicitly state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Angry Chickz or its representatives. This provision overrides any other conflicting terms in the franchise agreement.
This means that prospective Angry Chickz franchisees in these states are protected from being forced to waive their right to pursue legal action based on misrepresentations made by the franchisor during the franchise sales process. This protection is particularly important because the franchise sales process often involves projections and promises about potential earnings and support, which can be difficult to verify independently.
For franchisees outside of these specific states, it's important to note that the FDD includes addenda that modify the franchise agreement to comply with local laws. The inclusion of these specific clauses for multiple states suggests that Angry Chickz is aware of the need to comply with varying state franchise laws and may be willing to negotiate similar protections for franchisees in other states. Prospective franchisees should consult with a franchise attorney to understand their rights and protections under the laws of their specific state and to determine whether similar addenda can be negotiated for their franchise agreement.