Who are considered 'Checkers Parties' that are released from claims in the general release?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Consistent with the previous introduction, you, on your own behalf and on behalf of your successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, shareholders, members, directors, officers, principals, employees, and affiliated entities (collectively, the "Releasing Parties"), hereby forever release and discharge us and our current and former officers, directors, shareholders, principals, employees, agents, representatives, affiliated entities, successors, and assigns (collectively, the "Checkers Parties") from any and all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature and kind (collectively, "Claims") that you and any of the other Releasing Parties now has, ever had, or, but for this document, hereafter would or could have against any of the Checkers Parties (1) arising out of or related to the Checkers Parties' obligations under the Franchise Agreement or (2) otherwise arising from or related to your and the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the Checkers Parties. You, on your own behalf and on behalf of the other Releasing Parties, further covenant not to sue any of the Checkers Parties on any of the Claims released by this paragraph and represent that you have not assigned any of the Claims released by this paragraph to any individual or entity who is not bound by this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the "Checkers Parties" who are released from claims in the general release include Checkers and their current and former officers, directors, shareholders, principals, employees, agents, representatives, affiliated entities, successors, and assigns. This means that the release extends beyond just the main Checkers corporation to protect a wide range of individuals and entities associated with the company.
This broad definition of "Checkers Parties" is significant for a prospective franchisee because it limits their ability to bring claims against anyone connected to Checkers, not just the corporation itself. For example, if a franchisee has a dispute, they generally cannot sue a former Checkers employee or a current director, as these individuals are covered by the release. The release covers claims arising from the Franchise Agreement or the relationship between the franchisee and Checkers, from the beginning of time to the date of signing the release.
It is important to note that the release includes a covenant not to sue, meaning the franchisee agrees not to initiate lawsuits against the Checkers Parties. The FDD also states that in Maryland, the general release will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland may have additional protections and rights despite the general release. Franchisees should carefully review the release and understand its implications, especially in light of state-specific regulations like those in Maryland, Michigan, Minnesota, and Wisconsin, which may limit the enforceability of certain provisions.