Does the Chicken Guy Washington Addendum address releases or waivers executed in connection with a transfer of a franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
As a result, any such provisions contained in the Development Agreement or elsewhere are void and unenforceable in Washington.
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- Questionnaires and Acknowledgments. 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 Franchise Disclosure Document, the Washington Addendum addresses releases or waivers in connection with the commencement of the franchise relationship, not specifically in the context of a transfer. Specifically, it states that no statement, questionnaire, or acknowledgment signed by a franchisee related to starting the franchise can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chicken Guy or its representatives. This provision overrides any conflicting terms in other franchise documents.
This means that Chicken Guy franchisees in Washington are protected from unknowingly waiving their legal rights or claims when they initially sign agreements and documents to begin their franchise operation. The addendum ensures that franchisees cannot be forced to forfeit their rights under Washington's franchise laws through standard paperwork at the beginning of their franchise relationship.
However, the Washington Addendum does not explicitly address releases or waivers related to the transfer of a franchise. A prospective franchisee should ask Chicken Guy about the specific requirements and implications of releases or waivers in the context of transferring a franchise in Washington to fully understand their rights and obligations during a transfer scenario.