Who is included in the definition of 'Releasors' in the general release for the Carls Jr. Development Agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as set forth at the end of this Section 11, Developer (on behalf of itself and its parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities) and all individuals who execute this Agreement (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 Agreement, including, without limitation, claims arising
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the definition of "Releasors" in the general release includes two distinct groups. First, it encompasses the Developer, which is defined as the entity entering into the Development Agreement. This includes the Developer itself, along with its parent company, subsidiaries, and affiliates. It also extends to the past and present officers, directors, shareholders, agents, and employees of these entities, both in their corporate and individual capacities.
Second, the definition of "Releasors" also includes all individuals who execute the Development Agreement. This means that any person who signs the agreement on behalf of the Developer, or in any other capacity, is also considered a Releasor. Both the Developer and the individuals who sign the agreement, are agreeing to release Carls Jr. from certain claims as part of the Development Agreement.
This release is a significant legal commitment, as the Releasors agree to release Carls Jr. from any and all claims, demands, liabilities, and causes of action of any kind, whether known or unknown, that they may have against Carls Jr. This release covers any events occurring on or before the date of the Development Agreement. However, the release does not extend to claims arising from representations in the Carls Jr. Franchise Disclosure Document or claims arising under applicable state or federal franchise laws regulating the offer or sale of the franchise.