Under what conditions is the Angry Chickz Addendum to the Area Development Agreement executed?
Angry_Chickz Franchise · 2025 FDDAnswer 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. |
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Addendum to the Area Development Agreement is executed under various conditions, primarily related to specific state laws and regulations. For instance, if the offer or sale of a franchise is made in Virginia, if the franchisee is a resident of Virginia, or if the franchised business will be located in Virginia, an addendum is executed. Similarly, an addendum is executed for franchises sold in Maryland to comply with Maryland statutes and regulations, particularly concerning financial assurances required by the Maryland Securities Commissioner. In Illinois, an addendum is added due to the Illinois Attorney General's Office imposing a deferral requirement related to the franchisor's financial condition. Also, if the offer or sale of a franchise was made in the State of Rhode Island; if the franchisee is a resident of the State of Rhode Island; and/or part or all of the Development Area is located in the State of Rhode Island, an addendum is executed.
These addenda often address specific legal requirements and consumer protection measures within each state. For example, the Maryland addendum defers initial fees and payments until Angry Chickz completes its pre-opening obligations. The Illinois addendum ensures that provisions designating jurisdiction outside of Illinois are void and that franchisees cannot waive compliance with Illinois franchise law. The Virginia addendum also ensures that franchisees cannot waive claims under applicable state franchise law.
For a prospective Angry Chickz area developer, these addenda highlight the importance of understanding the specific legal landscape of the states in which they plan to operate. The variations in addenda from state to state suggest that Angry Chickz tailors its agreements to comply with local regulations, which can impact the financial and legal obligations of the franchisee. It is crucial for potential franchisees to carefully review the addendum applicable to their state and seek legal counsel to fully understand their rights and responsibilities.