Under what condition does the amendment to the Chick Fil A franchise agreement regarding statements, questionnaires, or acknowledgements become effective?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following is added as a new Section 28.19 to the Franchise Agreement, under the heading entitled "General Provisions":
- 28.19 No Statement, Questionnaire, or Acknowledgement. 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.
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- Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements and any other requirements of the Minnesota Franchise Act, Minn. Stat. §§ 80C.01 through 80C.22, and of the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce, Minn. Rules §§ 2860.0100 through 2860.9930, with respect to each such
provision, are met independent of and without reference to this Amendment. This Amendment shall have no force or effect if such jurisdictional or other requirements are not met.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, an amendment to the franchise agreement addresses statements, questionnaires, or acknowledgements signed by a franchisee. This amendment ensures that these documents do not waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chick Fil A or its representatives. This protection is designed to prevent franchisees from inadvertently giving up their legal rights when starting their franchise. This amendment adds a new Section 28.19 to the Franchise Agreement, under the heading "General Provisions".
However, the effectiveness of this amendment is conditional. For franchisees in California, Hawaii, Minnesota, South Dakota, Virginia, Washington and Wisconsin, each provision of the amendment is effective only if the jurisdictional and other requirements of the relevant state law are met independently of the amendment itself. This means that the amendment's provisions must comply with existing state franchise laws without relying on the amendment to achieve compliance. If these state-specific requirements are not met, the amendment has no force or effect.
This conditionality implies that Chick Fil A franchisees need to be aware of the specific franchise laws in their state and how they interact with the franchise agreement. It also suggests that Chick Fil A is taking steps to ensure compliance with various state franchise laws, which can differ significantly. Prospective franchisees should consult with a legal professional to understand the implications of these provisions in their specific state and to ensure they are fully protected under the law.