Besides the Developer and CJR, does the Carls franchise agreement confer any rights or remedies to other persons or entities?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- F. Developer agrees that no past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, affiliate, controlling party, entity under common control, ownership or management, vendor, service provider, agent, attorney or representative of CJR will have any liability for: (1) any obligations or liabilities of CJR relating to or arising from this Agreement; (2) any claim against CJR based on, in respect of, or by reason of the relationship between Developer and CJR; or (3) any claim against CJR based on any alleged unlawful act or omission of CJR.
This provision does not include a release of claims arising from representations in the Carl's Jr.
This provision does not include a release of claims arising from representations in the Carl's Jr.
Franchise Disclosure Document provided to Franchisee in connection with this Agreement or any claims arising under any applicable state
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, the franchise agreement specifies that no past, present, or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, affiliate, controlling party, entity under common control, ownership or management, vendor, service provider, agent, attorney or representative of CJR will have any liability for any obligations or liabilities of CJR relating to the agreement, any claim against CJR based on the relationship between the Developer and CJR, or any claim against CJR based on any alleged unlawful act or omission of CJR.
This provision does not release Carls from claims arising from representations in the Franchise Disclosure Document or any claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise for the agreement, including without limitation the FTC Rule on Franchising.
In practical terms, this means that while the franchisee (Developer) has a direct contractual relationship with CJR, they cannot pursue legal action against individuals or entities associated with CJR for matters related to the franchise agreement, except for misrepresentations in the FDD or violations of franchise laws. This clause aims to protect individuals and related entities associated with Carls from being held personally liable for the actions or obligations of the company.