Does the general release in the Carvel franchise agreement apply to claims arising from representations made in the FDD?

According to Carvel's 2025 Franchise Disclosure Document, the general release within the franchise agreement does not apply to claims arising from representations made in the FDD. Specifically, the FDD states that the release will not affect claims stemming from representations in the FDD, including its exhibits. This ensures that franchisees retain their rights to pursue claims based on information provided by Carvel in the disclosure document. This protection is fairly standard in franchising, as the FDD is a key document for prospective franchisees.

This provision is favorable for potential Carvel franchisees because it allows them to hold Carvel accountable for the accuracy and completeness of the information presented in the FDD. The FDD serves as a critical resource for franchisees to evaluate the franchise opportunity, and this clause ensures that franchisees are not waiving their rights to legal recourse if the information provided is misleading or inaccurate. This protection extends to any exhibits included with the FDD, providing a comprehensive safeguard.

It is important for prospective Carvel franchisees to carefully review the entire FDD and its exhibits, and to consult with an attorney or financial advisor to fully understand their rights and obligations. While the general release does not apply to claims arising from representations made in the FDD, other provisions of the franchise agreement may affect a franchisee's ability to bring claims against Carvel. Franchisees should also be aware of any state-specific laws that may provide additional protections.