Does the Chicken Guy Addendum waive any claims under state franchise law?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, the addenda included for California, Illinois, Maryland, and New York states specify that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law. This includes claims related to fraud in the inducement. These provisions override any conflicting terms in other documents related to the franchise agreement.
For franchisees in California, Illinois, Maryland, and New York, this means that they retain their rights under state franchise laws, regardless of any agreements or acknowledgments signed during the commencement of the franchise relationship. This protection ensures that franchisees cannot inadvertently waive their legal rights through standard paperwork.
Specifically for Maryland franchisees, the addendum states that any release signed by the franchisee does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Furthermore, the Maryland Franchise Registration and Disclosure Law governs any claim arising under that law, and franchisees can bring lawsuits in Maryland for claims arising under this law, regardless of the franchise agreement's choice of law or venue. For New York franchisees, any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable, and any provision requiring a general release of claims against Chicken Guy does not release any claim Franchisee may have under New York General Business Law, Article 33, Sections 680-695. For Illinois franchisees, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.