Will any waiver granted by Angry Chickz prejudice other rights of the Company?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
Waiver of Section 1542**.
Further, Releasors expressly waive all right, protection, privilege and benefit under Section 1542 of the Civil Code of the State of California, which provides:
- 1542 A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
By signing this Release of All Claims, Releasors are giving up all rights under Section 1542 and any similar provision of any state.
- **4.
No Prior Assignment.** Franchisee and Guarantors represent and warrant that the Releasors are the sole owners of all Claims and rights released in Section 1 and that the Releasors have not assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim released under Section 1.
- **5.
Covenant Not to Sue.** Franchisee and Guarantors (on behalf of Releasors) covenant not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any person or entity released under Section 1 with respect to any Claim released under Section 1.
- **6.
Complete Defense.** Franchisee and Guarantors: (a) acknowledge that the release in Section 1 shall be a complete defense to any Claim released under Section 1; and (b) consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such Claim.
- **7.
Successors and Assigns.** This Release will inure to the benefit of and bind the successors, assigns, heirs and personal representatives of ANGRY CHICKZ and each Releasor.
- **8.
Third Party Beneficiary.** ANGRY CHICKZ and its parent, affiliates and subsidiaries shall be third party beneficiaries under this Release.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement includes a general release that franchisees must sign when renewing or transferring their franchise. This release involves waiving rights under Section 1542 of the Civil Code of California, which states that a general release does not extend to claims unknown at the time of signing that would have significantly impacted the settlement.
The release requires franchisees and guarantors to waive their rights, protections, privileges, and benefits under Section 1542 of the California Civil Code. This means franchisees are giving up their rights to claims they may not be aware of when signing the release. Additionally, franchisees covenant not to initiate or participate in any legal proceedings against those released under Section 1, and they acknowledge that the release serves as a complete defense against any released claim.
This release benefits Angry Chickz and its affiliates as third-party beneficiaries, ensuring the release extends to their successors, assigns, heirs, and personal representatives. However, in certain states like New York, franchise questionnaires and acknowledgments cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Angry Chickz. Similarly, in Minnesota, the franchisor cannot enforce litigation outside of Minnesota or require waiver of a jury trial, ensuring franchisees retain their rights and remedies under state law.