factual

What effect do statements, questionnaires, or acknowledgements signed by a Chicken Guy franchisee have on waiving claims under state franchise law or disclaiming reliance on statements made by Chicken Guy or its representatives?

Chicken_Guy Franchise · 2025 FDD

Answer 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, certain addenda address the effect of signed statements, questionnaires, or acknowledgments by franchisees. Specifically, for franchisees in California, Illinois, Maryland, Minnesota, New York and Washington, no such document signed in connection with the commencement of the franchise relationship will waive any claims under applicable state franchise law. This includes claims related to fraud in the inducement. These documents also cannot disclaim reliance on any statement made by Chicken Guy, its franchise sellers, or anyone acting on behalf of Chicken Guy.

This provision is designed to protect franchisees by preventing them from inadvertently giving up their legal rights through standard documents executed at the start of the franchise relationship. The addenda explicitly state that this provision supersedes any other conflicting terms in any document related to the franchise agreement. This means that even if another part of the franchise agreement seems to suggest that a franchisee is waiving certain rights or disclaiming reliance on certain statements, this specific provision in the addendum will take precedence.

For a prospective Chicken Guy franchisee, this is a beneficial protection. It ensures that franchisees in California, Illinois, Maryland, Minnesota, New York and Washington retain their rights under state franchise laws and can hold Chicken Guy accountable for any misrepresentations made during the franchise sales process, regardless of any standard documents they may have signed. Franchisees in other states should consult with a legal professional to determine what protections are available to them under applicable state franchise laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.