If the franchisee is an entity, who specifically must provide the release to Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, if the franchisee is an entity, the release must be provided by the franchisee itself (on behalf of its parents, subsidiaries, and affiliates, including their past and present officers, directors, shareholders, agents, and employees in both corporate and individual capacities) and the guarantors (on behalf of themselves, their heirs, representatives, successors, and assigns). This comprehensive release covers all claims, demands, liabilities, and causes of action, whether known or unknown, vested or contingent, suspected or unsuspected, that the releasors ever owned, hold, or may own or hold in the future. These claims include those arising under federal, state, and local laws, rules, and ordinances, as well as those related to the Development Agreement and/or Franchise Agreement and all other agreements between any releasor and releasee. The release applies to any act, omission, or event occurring on or before the date of the release, unless prohibited by applicable law.
This release is a significant legal document, and prospective Angry Chickz franchisees should carefully review it with their legal counsel to fully understand its implications. The release extends to a wide range of potential claims and includes a waiver of rights under Section 1542 of the California Civil Code, which pertains to unknown claims. Franchisees and guarantors also represent and warrant that they are the sole owners of all claims and rights released and have not assigned or transferred any claim released under Section 1 to any other person or entity.
The document also includes a covenant not to sue, preventing franchisees and guarantors from initiating or participating in any legal proceedings against those released under Section 1. This release serves as a complete defense against any claim released under Section 1, and Angry Chickz is entitled to a temporary or permanent injunction to prevent or end the assertion of any such claim. The terms of the release are to remain confidential, except when disclosure is required by law or court order. The release is governed by and construed under the law of the state of California, and any disputes must be filed in the court where Angry Chickz's principal offices are located.
It is important to note that this general release does not apply to claims arising under the Washington Franchise Investment Protection Act or the Maryland Franchise Registration and Disclosure Law. Prospective franchisees should be aware of these exceptions and consult with legal counsel to understand their rights and obligations under these laws. The requirement for a general release upon renewal or transfer of the franchise is also highlighted, along with a warning that California law voids waivers of rights under the Franchise Investment Law and the Franchise Relations Act.