What is the consideration given by CJR for the Carl's Jr. General Release?

According to the 2025 Carls Jr. Franchise Disclosure Document, each guarantor, whether an individual or a business entity, agrees to release CJR from all claims and liabilities. The franchisee (on behalf of the Releasors) agrees that fair consideration has been given by CJR for this release. This signifies that Carls Jr. and the franchisee acknowledge that something of value is exchanged for the release of claims, making it a negotiated, complete, and final agreement.

This release covers any claims, demands, liabilities, and causes of action, whether known or unknown, vested or contingent, or suspected or unsuspected, that the releasor may have against CJR. It encompasses any fact, event, conduct, or omission occurring on or before the date of the guarantee. This includes claims arising under federal, state, and local laws, rules, and ordinances, as well as claims for contribution, indemnity, and/or subrogation. It also includes claims arising out of or relating to the agreement and all other agreements between any releasor and any CJR releasee, the sale of a franchise to any releasor, the development of any franchised restaurant, and the development and operation of all other restaurants operated by any releasor that are or were franchised by CJR or its parents, subsidiaries, affiliates, or predecessors.

However, the release does not extend to claims arising from representations made in the Carl's Jr. Franchise Disclosure Document provided to the franchisee or any claims arising under applicable state or federal franchise laws regulating the offer or sale of the franchise as of the date of the agreement. This carve-out ensures that the franchisee retains the right to pursue claims related to misrepresentations in the FDD or violations of franchise laws. Prospective franchisees should consult with a legal professional to fully understand the implications of this release and the specific consideration provided by Carls Jr.