What is the definition of 'Releasor' in the context of the Carl's Jr. General Release?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as set forth in this Section 3, each Guarantor (if an individual, on behalf of him/herself and his/her heirs, representatives, successors and assigns, and if a business entity, on behalf of itself and its parent, subsidiaries and affiliates) (each a "Releasor" and collectively, "Releasors"), freely and without any influence forever release and covenant not to sue CJR, its parents, subsidiaries, affiliates, predecessors and successors and their respective past and present officers, directors, managers, shareholders, members, agents and employees, in their corporate and individual capacities (collectively, "CJR Releasees"), from any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively "claims"), which any Releasor now owns or holds or may in the future own or hold based on, arising out of or relating to, in whole or in part, any fact, event, conduct or omission occurring on or before the date of this Guarantee, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, claims for contribution, indemnity and/or subrogation, and 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.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a "Releasor" is defined within the context of the General Release as each Guarantor. If the Guarantor is an individual, the release extends to themself, their heirs, representatives, successors, and assigns. If the Guarantor is a business entity, the release extends to the business itself, its parent companies, subsidiaries, and affiliates.
This definition is important because it clarifies who is giving up their rights to sue Carls Jr. in the General Release. It ensures that not only the franchisee (or guarantor) is bound by the release, but also their related parties and entities. This prevents those related parties from later bringing claims against Carls Jr. based on the same issues covered by the release.
The General Release covers any and all claims, demands, liabilities, and causes of action, whether known or unknown, that the Releasor has or may have against "CJR Releasees". However, the release does not extend to claims arising from representations in the Carls Jr. Franchise Disclosure Document or claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise.