Under the Angry Chickz agreement, what is the Developer agreeing to regarding reliance on representations not included in the agreement or Franchise Disclosure Document?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the addenda for Illinois, California, Maryland, and Virginia state that franchisees are not disclaiming reliance on statements made by Angry Chickz, franchise sellers, or anyone acting on behalf of Angry Chickz, regardless of what any document says. This protects franchisees from unknowingly waiving their rights to make claims based on information provided outside of the official documents. This provision supersedes any other conflicting terms in any document related to the franchise agreement.
Specifically, the addenda clarify that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims related to fraud in the inducement. This means that if a franchisee believes they were misled by statements made during the franchise sales process, they retain the right to pursue legal action, even if they signed something that appeared to disclaim reliance on those statements. This is a crucial protection for franchisees, ensuring they are not bound by unintentional waivers of their legal rights.
This protection is particularly important because the franchise sales process often involves numerous conversations, presentations, and documents. It can be challenging for a franchisee to keep track of every representation made and to ensure that all important information is included in the final franchise agreement and FDD. These addenda ensure that franchisees are not penalized for relying on information provided by Angry Chickz during the sales process, even if that information is not explicitly stated in the written agreements. This levels the playing field and provides franchisees with recourse if they are misled.
It is important to note that these protections are specifically mentioned in the addenda for Illinois, California, Maryland, and Virginia. Franchisees in other states should carefully review their franchise agreements and disclosure documents to understand their rights and obligations regarding reliance on representations made during the franchise sales process. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.