Under the Carls Jr. agreement, what claims against CJR are NOT waived by the developer?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
This provision does not include a release of claims arising from representations in the Carl's Jr.
Franchise Disclosure Document provided to Franchisee in connection with this Agreement or any claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise for this Agreement (including without limitation the FTC Rule on Franchising (16 C.F.R.
Part 436)).
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the release provided by the developer does not include claims arising from representations made in the Franchise Disclosure Document itself. This means that if a franchisee believes they were misled by information presented in the FDD, they retain the right to pursue legal action against Carls Jr. regarding those misrepresentations.
Additionally, the release does not waive claims arising under any applicable state or federal franchise laws regulating the offer or sale of the franchise. This protects the franchisee's rights under franchise-specific laws, such as those governing franchise registration, disclosure requirements, and relationship laws. The FDD specifically mentions the FTC Rule on Franchising (16 C.F.R. Part 436) as an example of a federal regulation that is not waived by this release.
In practical terms, this means that a prospective Carls Jr. franchisee should carefully review the FDD and any related documents for accuracy and completeness. If they believe there are material misrepresentations or omissions, they should seek legal counsel to understand their rights and options. Similarly, they should be aware of their rights under applicable state and federal franchise laws, as these rights are not waived by the general release in the franchise agreement.