Are there any claims that are NOT covered by the general release provided to Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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., Bus. Reg. §§14-201 – 14-233, or the rules adopted thereunder.
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.
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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the general release provided to franchisees does not apply to certain claims, particularly those arising under specific state franchise laws. In Maryland, the general release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights to bring claims under this law, regardless of the general release. Similarly, in Minnesota, the franchisor cannot require a release that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 - 80C.22. This ensures that franchisees in Minnesota maintain their statutory rights and protections. In Illinois, any condition that binds a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
These exceptions are crucial for prospective Angry Chickz franchisees as they highlight the limitations of the general release and protect their rights under state franchise laws. The addenda for Maryland, Minnesota, and Illinois specifically state that certain provisions within the franchise agreement or related documents cannot waive claims or disclaim reliance on statements made by the franchisor, especially concerning fraud in the inducement. This ensures that franchisees in these states have recourse if they believe they were misled or defrauded during the franchise sales process.
For franchisees, this means that while they are signing a general release, it does not completely absolve Angry Chickz from all potential liabilities. The state-specific addenda carve out important exceptions that protect franchisees' rights under their respective state laws. Franchisees should be aware of these exceptions and consult with legal counsel to fully understand their rights and obligations. This also underscores the importance of carefully reviewing the franchise agreement and any addenda specific to their state before signing.