What is the standard for determining if transfer fees are collectable by Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on by | |
|---|---|
| ("Franchisee") and/or | |
| ("Guarantors") as a condition of (1) the | |
| transfer of the ANGRY CHICKZ FRANCHISING LLC Franchise Agreement | dated |
| between ANGRY CHICKZ FRANCHISING LLC ("Angry Chickz") and Franchisee ("Franchise | |
| Agreement") or the ANGRY CHICKZ FRANCHISING LLC | Development Agreement dated |
| between ANGRY CHICKZ and Franchisee ("Development Agreement"); or (2) the | |
| execution of a renewal Franchise Agreement by Franchisee and ANGRY CHICKZ. |
- **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.
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.
- **5.
Covenant Not to Sue.** Franchisee and Guarantors (on behalf of Releasors) covenant not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any person or entity released under Section 1 with respect to any Claim released under Section 1.
- **6.
Complete Defense.** Franchisee and Guarantors: (a) acknowledge that the release in Section 1 shall be a complete defense to any Claim released under Section 1; and (b) consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such Claim.
- **7.
Successors and Assigns.** This Release will inure to the benefit of and bind the successors, assigns, heirs and personal representatives of ANGRY CHICKZ and each Releasor.
- **8.
Third Party Beneficiary.** ANGRY CHICKZ and its parent, affiliates and subsidiaries shall be third party beneficiaries under this Release.
- **9.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document excerpts, a general release must be signed as a condition of transferring an Angry Chickz franchise. This release is executed by the franchisee and/or guarantors. The release is required for both the transfer of the Franchise Agreement and the Development Agreement.
This general release includes a waiver of Section 1542 of the Civil Code of the State of California, which states that a general release does not extend to claims that the releasing party is unaware of at the time of signing the release, and that would have materially affected the settlement if known. By signing the release, the franchisee gives up all rights under Section 1542 and any similar state provision.
The franchisee and guarantors also represent that they are the sole owners of all claims and rights released and have not assigned or transferred any claim. They also agree not to participate in any legal proceedings against any person or entity released under Section 1, acknowledging that the release serves as a complete defense against any claim. The release benefits Angry Chickz and its affiliates as third parties and is governed by California law.
Prospective franchisees should consult with legal counsel to fully understand the implications of signing a general release and waiving rights, especially concerning potential future claims. Franchisees should be aware of the specific conditions under which a release is required and the extent to which it may impact their legal rights and options.