When is a release or waiver of rights valid for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
6. 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.
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU:
(a) A prohibition on the right of a franchisee to join an association of franchisees.
(b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act.
This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
3. General Release. The following statement is added to Item 17:
Minnesota Rule 2860.4400D prohibits a Franchisor from requiring you to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 - 80C.22.
2. Choice of Forum and Law; Waiver of Right to Jury Trial or Termination Penalties. The following statements are added to Item 17:
Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit the Franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
- 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.
- **13.
Applicability.** This General Release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, or the rules adopted thereunder; and the Maryland Franchise Registration and Disclosure Law, Md. Code Ann
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 FDD, the validity of a release or waiver of rights for an Angry Chickz franchise depends on the specific state and the nature of the rights being waived. In California, a general release is required when renewing or transferring a franchise. However, California law voids any waiver of rights under the Franchise Investment Law or the Franchise Relations Act. Additionally, no statement signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor. This provision overrides any conflicting terms in the franchise agreement.
In Michigan, certain unfair provisions that might appear in franchise documents are void and unenforceable. These include prohibitions on joining franchisee associations and requirements that franchisees assent to releases or waivers that deprive them of rights and protections under the Michigan Franchise Investment Law. However, a franchisee can settle claims after entering into a franchise agreement.
In Minnesota, franchisors are prohibited from requiring franchisees to agree to releases or waivers that relieve any person from liability imposed by Minnesota Statutes §§ 80C.01 - 80C.22. The FDD also states that Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit Angry Chickz from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
Furthermore, a general release does not extend to claims that the releasing party is unaware of at the time of signing the release, if knowledge of such claims would have significantly affected the settlement. Franchisees and guarantors also represent that they are the sole owners of all claims and rights released and have not assigned or transferred any claim released. The release does not apply to claims arising under the Washington Franchise Investment Protection Act or the Maryland Franchise Registration and Disclosure Law.