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Under what circumstances is the Angry Chickz addendum to the Development Agreement executed?

Angry_Chickz Franchise · 2025 FDD

Answer from 2025 FDD Document

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 | | the parties in accordance with its terms. | Except as set forth herein, the Franchise Agreement shall be valid and enforceable between | | as of the Effective Date identified below. | IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum | | "Company" | "Franchisee" | | ANGRY CHICKZ FRANCHISING LLC, | , | | a California limited liability company | [ ] an individual [ ] a general partnership; [ ] a limited partnership; | | By: | [ ] a limited liability company; | | Name: | [ ] a corporation; | | Its: | By: | | Date of signing: | Name: Its: Date of signing: |

ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC AREA DEVELOPEMNT AGREEMENT

(State of Virginia)

THIS ADDENDUM is entered into as of, 20 between ANGRY
CHICKZ FRANCHISING LLC, a California limited liability company ("Company"), and , a ("Franchisee"), with reference to the
following:
The provisions of this Addendum form an integral part of, and are incorporated into, the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to you was made in the State of Virginia; (B) you are a resident of the State of Virginia;
and/or (C) the franchised business will be located in the State of Virginia.
1. Payment of all initial fees payable under the Area Development Agreement is deferred
until Franchisor has satisfied its pre-opening obligations to you under the Area Development
Agreement and your first Angry Chickz business opens to the public.
2. 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.
Except as set forth herein, the Area Development Agreement shall be valid and enforceable
between the parties in accordance with its terms.
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum
as of the Effective Date identified below.
"Company" "Developer"
ANGRY CHICKZ FRANCHISING LLC, ,
a California limited liability company [ ] an individual [ ] a general partnership; [ ] a limited partnership;
By: [ ] a limited liability company;
Name: [ ] a corporation;
Its: By:
Date of signing: Name: Its: Date of signing:

ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON

The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.

  • 1. Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
  • 2. Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
  • 3. Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
  • 4. General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).

Source: Item 23 — RECEIPTS (FDD pages 54–260)

What This Means (2025 FDD)

According to the 2025 Angry Chickz Franchise Disclosure Document, there are several specific circumstances under which an addendum to the Development Agreement is executed. These addenda primarily address legal and financial considerations that vary by state. For instance, if the offer or sale of a franchise is made in Rhode Island, if the franchisee is a resident of Rhode Island, or if the development area is located in Rhode Island, an addendum is executed. This addendum includes stipulations that void any restrictions on jurisdiction or venue outside of Rhode Island, ensuring the franchisee's rights under the Rhode Island Franchise Investment Act are protected.

Another instance is when the offer or sale of a franchise occurs in Virginia, or if the franchisee resides in Virginia, or if the franchised business will be located in Virginia. In this case, the addendum ensures that all initial fees payable under the Area Development Agreement are deferred until Angry Chickz has met its pre-opening obligations and the first Angry Chickz business opens to the public. Furthermore, it prevents franchisees from waiving any claims under applicable state franchise law, including fraud in the inducement, or disclaiming reliance on statements made by Angry Chickz.

In Maryland, an addendum is required due to the Maryland Securities Commissioner mandating a financial assurance based on Angry Chickz's financial condition. This addendum defers all initial fees and payments until Angry Chickz completes its pre-opening obligations. It also amends sections of the Area Development Agreement to ensure that releases required for assignment or renewal do not apply to liability under the Maryland Franchise Law. Similarly, in Illinois, an addendum is executed, deferring all initial fees until Angry Chickz fulfills its pre-opening obligations and the first Angry Chickz business opens, a requirement imposed by the Illinois Attorney General's Office due to Angry Chickz's financial condition. These addenda ensure compliance with state-specific franchise laws and provide additional protections to franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.