What representation does the franchisee make regarding the assignment of claims released to Checkers?
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, as part of the franchise agreement, the franchisee represents that they have not assigned any of the claims released to any individual or entity not bound by the same release terms. This representation is made on behalf of themselves and their successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, shareholders, members, directors, officers, principals, employees, and affiliated entities, collectively referred to as the "Releasing Parties."
In practical terms, this means a Checkers franchisee assures Checkers that they haven't given anyone else the right to pursue the claims they are releasing as part of the agreement. This prevents third parties, who are not subject to the release, from later bringing claims against Checkers based on the franchisee's prior rights. The franchisee also agrees not to sue Checkers on any of the released claims.
This clause is designed to protect Checkers from future litigation related to the franchise agreement or the franchisee's relationship with Checkers. By confirming that the franchisee hasn't assigned these claims, Checkers aims to ensure that the release is comprehensive and binding, limiting potential legal liabilities. However, the release does not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law.