Can Angry Chickz require a franchisee to assent to a waiver that deprives them of rights and protections?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- (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.
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.
- D. Franchise Questionnaires and Acknowledgements--No statement, questionnaire, or acknowledgment 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.
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).
- 3. Waiver of Section 1542.
Further, Releasors expressly waive all right, protection, privilege and benefit under Section 1542 of the Civil Code of the State of California, which provides:
- 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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the answer depends on the state where the franchise is located. In Michigan, the FDD explicitly states that any requirement for a franchisee to sign a waiver that deprives them of their rights and protections under the franchise act is void and unenforceable. This protection ensures that franchisees in Michigan cannot be forced to relinquish their legal rights through waivers within the franchise agreement.
For franchisees in Minnesota, the FDD states that Minnesota Rule 2860.4400D prohibits Angry Chickz from requiring a franchisee to agree to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes §§ 80C.01 - 80C.22. This provision aims to protect franchisees from being strong-armed into waiving rights granted to them under Minnesota franchise law. Similarly, in New York, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Angry Chickz or its representatives.
However, the standard release agreement includes a waiver of Section 1542 of the California Civil Code, which protects against releasing unknown claims. While this waiver is included in the general release, the enforceability of such waivers can vary, and franchisees should be aware of the rights they are giving up. The FDD also indicates that in California, certain waivers of rights under the Franchise Investment Law and the Franchise Relations Act are void. Therefore, prospective Angry Chickz franchisees should carefully review the specific addenda and provisions applicable to their state to understand the extent to which they may be asked to waive their rights and protections.