Does the release include claims arising from representations in the Carls Jr. Franchise Disclosure Document?

According to the 2025 Carls Jr. Franchise Disclosure Document, the general release that a guarantor provides does not include claims arising from representations made in the Franchise Disclosure Document. This means that even with the release, a franchisee or developer retains the right to pursue claims against 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 the franchisee, as it ensures they do not waive their rights to hold Carls Jr. accountable for the accuracy and completeness of the information provided in the FDD. The FDD is a critical document for evaluating the franchise opportunity, and this clause allows franchisees to seek legal recourse if the information presented is misleading or inaccurate.

It is important for prospective Carls Jr. franchisees to carefully review the entire Item 23 regarding receipts and releases, in conjunction with advice from a legal professional, to fully understand the scope of the release and their rights. This will help ensure they are aware of the claims they are releasing and those they are not, particularly concerning representations made within the Franchise Disclosure Document.