Does the liability waiver in the Carls Jr. agreement include a release of claims arising from representations in the Franchise Disclosure Document?

According to the 2025 Carls Jr. Franchise Disclosure Document, the general release does not include a release of claims arising from representations in the Franchise Disclosure Document. This means that franchisees retain the right to sue Carls Jr. based on misrepresentations or omissions in the FDD. This protection extends to claims arising under applicable state or federal franchise laws regulating the offer or sale of the franchise, including the FTC Rule on Franchising.

This provision is favorable for prospective Carls Jr. franchisees, as it allows them to hold the franchisor accountable for the accuracy and completeness of the information provided in the FDD. The FDD is a critical document for evaluating a franchise opportunity, and franchisees rely on its contents to make informed decisions. Without this clause, franchisees would be waiving their rights to sue based on information contained within the FDD.

It is important for prospective franchisees to carefully review the entire Item 23 regarding receipts and releases, as well as consult with a legal professional, to fully understand their rights and obligations under the franchise agreement. While this specific clause protects franchisees from unknowingly waiving claims related to FDD misrepresentations, other provisions may still impact their legal recourse against Carls Jr.