Under what circumstances is the Angry Chickz Area Developer NOT required to indemnify the Company?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN
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:
(a) A prohibition on the right of a franchisee to join an association of franchisees.
(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.
This shall not preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
- (c) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
- (d) A provision that permits a Franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration, of the franchisee's inventory, supplies, equipment, fixtures, and furnishings.
Personalized materials which have no value to the Franchisor and inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation.
This sub
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document, addenda for Michigan, Maryland, Illinois, and Virginia provide some protection to franchisees and area developers. In Michigan, certain unfair provisions that might appear in franchise documents are prohibited and cannot be enforced against the franchisee. These include any requirement that the franchisee agree to a release or waiver that deprives them of rights and protections under Michigan law.
In Maryland, any release required as a condition of assignment or renewal of the Area Development Agreement will not apply to liability under the Maryland Franchise Registration and Disclosure Law. Similarly, acknowledgments made in Article 13 of the Area Development Agreement cannot act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Furthermore, 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.
For franchisees in Illinois, any condition, stipulation, or provision that would bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. Additionally, 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. In Virginia, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Angry Chickz. These provisions are designed to protect franchisees and area developers from unknowingly waiving their legal rights or claims against Angry Chickz.