What claims are NOT released in the general release to Carls Jr.?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
This release does not include a release of claims arising from representations in the Carl's Jr.
Franchise Disclosure Document provided to any Releasor in connection with the Agreement or any claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise for the Agreement as of the date of the Agreement (including without limitation the FTC Rule on Franchising (16 C.F.R.
Part 436).
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the general release does not include claims arising from representations made in the Franchise Disclosure Document itself. This means that if a franchisee believes they were misled by information presented in the FDD, they are not prevented from pursuing a claim based on those misrepresentations.
Additionally, the general release does not cover claims arising under any applicable state or federal franchise laws that regulate the offer or sale of the franchise. This explicitly includes claims arising under the FTC Rule on Franchising (16 C.F.R. Part 436). This ensures that franchisees retain their rights to pursue legal action if they believe Carls Jr. violated franchise laws during the offer or sale of the franchise.
In practical terms, this means a prospective Carls Jr. franchisee signing the general release is still able to hold the franchisor accountable for the accuracy of the information provided in the FDD and for compliance with franchise regulations. These exceptions to the general release are fairly standard in franchising, as they protect franchisees from unknowingly waiving their rights related to the franchise sales process and the disclosures made during that process.