What effect do statements or acknowledgments signed by a Chicken Guy franchisee have regarding waiving claims under California franchise law?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1. 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 Developer was made in the State of California; (B) Developer is a resident of the State of California; and/or (C) part or all of the Development Territory is located in the State of California.
- 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. 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 Chicken Guy's 2025 Franchise Disclosure Document, an addendum to the franchise agreement is required for California franchisees and developers. This addendum addresses the effect of statements, questionnaires, or acknowledgments signed by a franchisee in connection with starting their franchise.
The key provision states that no such document can waive any claims under California franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Chicken Guy or anyone acting on their behalf. This protects franchisees from inadvertently giving up their legal rights through standard paperwork.
This protection supersedes any other conflicting terms in any document related to the franchise agreement. This means that even if another part of the agreement seems to suggest a waiver, this specific provision in the California addendum takes precedence, ensuring the franchisee's rights under California franchise law are preserved.
The addendum is required because the franchise is offered or sold in California, the franchisee is a California resident, or the restaurant or protected area is located in California. This ensures that franchisees operating in California receive the full protection of California franchise law, regardless of what other documents might imply.