For a breach of any provision in the Carls Jr. agreement, who is personally liable?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 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.
Franchise Disclosure Document provided to Franchisee in connection with this Agreement or any claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise for this Agreement (including without limitation the FTC Rule on Franchising (16 C.F.R.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, 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 or arising from the agreement. This also includes any claim against CJR based on, in respect of, or by reason of 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 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 or federal franchise laws regulating the offer or sale of the franchise for this Agreement (including without limitation the FTC Rule on Franchising (16 C.F.R. Part 436)).
In essence, this clause protects individuals and entities associated with Carls Jr. from being held personally liable for the company's obligations and actions related to the franchise agreement. However, it does not protect against claims arising from misrepresentations in the FDD or violations of franchise laws.