What does an Angry Chickz franchisee waive in the event of wrongful issuance of an injunction?

According to the 2025 Angry Chickz Franchise Disclosure Document, a franchisee waives all claims for damages if an injunction is wrongfully issued against them, provided the injunction is later dissolved upon a due hearing. This means that if Angry Chickz obtains a court order (injunction) that temporarily restricts the franchisee's business operations, and it is later determined that the injunction was not justified, the franchisee cannot sue Angry Chickz for any financial losses incurred during the period the injunction was in place.

This waiver is significant because an injunction can disrupt a franchisee's business, leading to lost revenue, damaged reputation, and other financial setbacks. By agreeing to this clause, the franchisee assumes the risk of these potential losses if the injunction is later overturned. The FDD specifies that the franchisee's sole remedy is to seek the dissolution of the injunction itself.

This type of clause is not uncommon in franchise agreements, as franchisors often seek to protect their brand standards, trade secrets, and overall system integrity. The ability to quickly obtain injunctive relief can be crucial for a franchisor to prevent actions that could harm the brand. However, franchisees should carefully consider the implications of waiving their right to damages in such situations, as it could leave them vulnerable to financial losses if an injunction is wrongly issued. It is important to note that the franchisee is entitled to a hearing and due notice.