When renewing or transferring an Angry Chickz franchise, are franchisees required to sign a general release, and what California Corporations Code section voids waivers of rights under the Franchise Investment Law?

According to the 2025 Angry Chickz Franchise Disclosure Document, franchisees in California are required to sign a general release when renewing or transferring their franchise. This release involves relinquishing various claims against Angry Chickz, its parent companies, subsidiaries, and their respective officers, directors, shareholders, agents, and employees. These claims encompass all potential demands, liabilities, and causes of action, whether known or unknown, vested or contingent, arising from federal, state, or local laws, as well as those related to the Development Agreement, Franchise Agreement, and any other agreements between the franchisee and Angry Chickz.

However, California Corporations Code Section 31512 voids any waiver of rights under the Franchise Investment Law. This means that while a franchisee must sign a general release, they cannot waive their rights under the California Franchise Investment Law, which is designed to protect franchisees. This provision ensures that franchisees retain certain legal protections despite signing the release.

This requirement to sign a general release upon renewal or transfer is a fairly standard practice in franchising. It aims to protect the franchisor from potential future claims related to the franchise agreement or the franchisee's operation of the business. However, the stipulation that California law voids waivers of rights under the Franchise Investment Law provides an added layer of protection for franchisees in California, ensuring they do not unknowingly forfeit their legal rights.