Who are the 'Releasing Parties' who are releasing claims against Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
D FRANCHISEE RELEASE**
| Ended | through January 3, | ||||
|---|---|---|---|---|---|
| 2024 (Successor) (Successor) | December 30, January 1, 2024 June 16, 2023 (Predecessor) | 2023 through | |||
| Federal income tax benefit computed at | |||||
| statutory rate | $ (727) $ | (494) $ | (20,786) | ||
| State and local income tax benefit, net of federal | |||||
| income tax benefit | 9 | (20) | (3,871) | ||
| Permanent differences and other | 841 | 397 | 2,203 | ||
| Unrecognized tax benefits | (109) | - | 10 | ||
| Other | 577 | 16 | 1,778 | ||
| Deferred tax asset write-off | 3,305 | - | 2,366 | ||
| State accrual changes | - | - | 544 | ||
| State tax rate change | 159 | - | (17) | ||
| Change in deferred tax asset valuation | |||||
| allowance | (28,778) | 641 | 10,231 | ||
| Total income tax expense (benefit) | $ (24,723) $ | 540 $ | (7,542) | 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. |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the 'Releasing Parties' include the franchisee, along with their successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, shareholders, members, directors, officers, principals, employees, and affiliated entities. These parties are releasing claims against Checkers and its current and former officers, directors, shareholders, principals, employees, agents, representatives, affiliated entities, successors, and assigns, collectively known as the 'Checkers Parties'.
This release covers any and all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature that the franchisee and the other Releasing Parties have or ever had against the Checkers Parties. The claims being released arise from the Checkers Parties' obligations under the Franchise Agreement or otherwise arise from the relationship between the franchisee/Releasing Parties and the Checkers Parties, from the beginning of time to the date of the franchisee's signature.
The franchisee and the other Releasing Parties also agree not to sue any of the Checkers Parties on any of the released claims and confirm that they have not assigned any of these claims to any individual or entity not bound by this release. Checkers is also entitled to a release and covenant not to sue from the franchisee's owners, who must provide separate signatures to grant the release and covenant.
It's important to note that the release may not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. In Maryland, a franchisee may commence a lawsuit against Checkers for claims arising under this law, subject to the arbitration obligation under the Franchise Agreement. Prospective franchisees should carefully review these release provisions and understand their implications, especially concerning rights under state franchise laws.