What is the franchisee's understanding regarding the consideration given by the Franchisor for the release of claims in the Bojangles franchise agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that fair consideration has been given by Franchisor for this release and Franchisee fully understands that this is a negotiated, complete, and final release of all Claims.
[Add for California Franchisees; delete otherwise] Franchisee expressly waives and relinquishes all rights and benefits which either Franchisee may now have or may in the future have under and by virtue of California Civil Code Section 1542. Franchisee does so understanding the significance and consequence of such specific waiver. Section 1542 provides that "[a] general release does not extend to claims which the creditor does not know or suspect exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor."]
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, a franchisee acknowledges that fair consideration has been provided by Bojangles for the release of claims. The franchisee fully understands that this release is negotiated, complete, and final. This means that as part of the franchise agreement, the franchisee is giving up their right to sue Bojangles for any claims arising before or on the effective date of the agreement, in exchange for something of value provided by Bojangles.
This agreement is comprehensive, covering all types of claims, whether known or unknown, suspected or unsuspected. The franchisee also agrees not to sue any of the Franchisor Parties, which include Bojangles OpCo, LLC, its subsidiaries, affiliates, and their respective members, managers, officers, directors, shareholders, partners, agents, employees, successors, and assigns.
For franchisees in California, there is an additional clause where the franchisee expressly waives rights and benefits under California Civil Code Section 1542, understanding the significance of this waiver. This section states that a general release does not cover claims the creditor doesn't know or suspect exist at the time of the release, which, if known, would have significantly affected the settlement. This highlights the importance of franchisees understanding the implications of the release and seeking legal counsel if needed.