When renewing a Chicken Guy franchise, is the franchisee required to sign a general release?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sign a general release upon execution of the franchise and development agreements, if you transfer the rights granted under those agreements and if you renew your franchise under the franchise agreement. These provisions may not be enforceable under California law. California Corporations Code Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516). Business and Professions Code Section 21000 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, franchisees are generally required to sign a general release when renewing their franchise agreement. However, this requirement may not be enforceable under California law. Specifically, California Corporations Code Section 31512 voids any waiver of rights under the Franchise Investment Law, and Business and Professions Code Section 21000 voids waivers under the Franchise Relations Act. This means that while Chicken Guy's standard agreement includes a general release upon renewal, California franchisees might not be bound by that provision.
For franchisees in Maryland, any provisions requiring them to sign a general release of claims against Chicken Guy upon renewal does not release any claim they may have under the Maryland Franchise Registration and Disclosure Law.
For franchisees in Minnesota, they will not be required to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 - 80C.22.
Prospective franchisees should consult with a legal professional to understand the enforceability of such a release in their specific state and how it might affect their rights upon renewal.