What should a prospective Churchs Chicken franchisee do if the Franchise Disclosure Document contains a false or misleading statement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, certain provisions protect franchisees from unknowingly waiving their rights under franchise law. Specifically, the addendum to the franchise agreement states that no signed statement or acknowledgment can waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Churchs Chicken or its representatives. This protection is significant for prospective franchisees.
This means that if a Churchs Chicken franchisee believes they were misled by statements in the Franchise Disclosure Document (FDD) or by representatives of Churchs Chicken during the franchise sales process, they retain the right to pursue legal claims. The agreement explicitly ensures that franchisees cannot unintentionally waive their rights to claim fraud or misrepresentation based on information provided by the franchisor. This is particularly relevant during the initial stages of the franchise relationship when franchisees are making critical investment decisions based on the information provided to them.
This clause is designed to protect franchisees from overreaching by the franchisor. It ensures that franchisees are not bound by clauses that could prevent them from seeking legal recourse if they believe they were provided with false or misleading information. Prospective Churchs Chicken franchisees should carefully review the FDD and related agreements, and consult with legal counsel to fully understand their rights and protections under state franchise laws. This addendum provides an additional layer of security, ensuring that franchisees' rights are preserved even after signing the franchise agreement.