What law governs the Angry Chickz Franchise Agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
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- Payment of all initial fees payable under the Franchise Agreement and/or Area Development Agreement is deferred until Franchisor has satisfied its pre-opening obligations to you under the Franchise Agreement and/or Area Development Agreement and your Angry Chickz business opens to the public. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Illinois law shall apply to and govern the Franchise Agreement and Area Development Agreement.
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- Item 17, Additional Disclosure. The following statements are added to Item 17:
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
- Item 22, Additional Disclosure. The following statement is added to Item 22:
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.
By reading this Disclosure Document, you are not agreeing to, acknowledging, or making any representations whatsoever to the Franchisor and its affiliates.
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC FRANCHISE AGREEMENT
(State of Illinois)
The franchise agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
YOU MUST SIGN A GENERAL RELEASE IF YOU RENEW OR TRANSFER YOUR FRANCHISE. CALIFORNIA CORPORATIONS CODE SECTION 31512 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE INVESTMENT LAW
(CALIFORNIA CORPORATIONS CODE SECTIONS 31000 THROUGH 31505). BUSINESS AND PROFESSIONS CODE SECTION 20010 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE RELATIONS ACT (BUSINESS AND PROFESSIONS CODE SECTIONS 20000 THROUGH 20043).
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF HAWAII
In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§ 482E, et seq., the Angry Chickz Franchising LLC Franchise Disclosure Document for use in the State of Hawaii is amended to include the following:
THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF REGULATORY AGENCIES OR A FINDING BY THE DIRECTOR OF REGULATORY AGENCIES THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE OFFERING CIRCULAR, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
THIS OFFERING CIRCULAR CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the specific law that governs the Franchise Agreement depends on the state where the franchise is located. For franchisees in Illinois, Illinois law governs the Franchise Agreement. This is reinforced by an addendum specific to Illinois, which states that Illinois law shall apply to and govern the Franchise Agreement and Area Development Agreement. This addendum also highlights protections for franchisees under the Illinois Franchise Disclosure Act, ensuring that franchisees cannot waive their rights under Illinois law.
For franchisees in California, the franchise agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law. Additionally, California Corporations Code Section 31512 voids a waiver of rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31505), and Business and Professions Code Section 20010 voids a waiver of rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
For franchisees in Hawaii, the disclosure document includes an addendum recognizing the requirements of the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§ 482E, et seq. It emphasizes that the franchises will be/have been filed under the Franchise Investment Law of the State of Hawaii, though filing does not constitute approval or endorsement by the Director of Regulatory Agencies. The addendum also states that it is unlawful to offer or sell any franchise in Hawaii without first providing the prospective franchisee with a copy of the offering circular and all proposed agreements at least seven days prior to the execution of any binding agreement or the payment of any consideration.
Prospective franchisees should carefully review the specific addenda and provisions applicable to their state to understand their rights and obligations under the relevant franchise laws. It is also advisable to seek legal counsel to ensure full comprehension of the legal framework governing the Angry Chickz Franchise Agreement in their specific location.